In The Better Angels of Our Nature, Pinker presents data showing that human violence, while still very much with us today, has been gradually declining. Moreover, he says, “over the long sweep of history, women have been and will be a pacifying force. Traditional war is a man’s game: tribal women never band together to raid neighboring villages.” As mothers, women have evolutionary incentives to maintain peaceful conditions in which to nurture their offspring and ensure that their genes survive into the next generation.

Skeptics immediately reply that women have not made war simply because they have rarely been in power. If they were empowered as leaders, the conditions of an anarchic world would force them to make the same bellicose decisions that men do. Margaret Thatcher, Golda Meir, and Indira Gandhi were powerful women; all of them led their countries to war.

But it is also true that these women rose to leadership by playing according to the political rules of “a man’s world.” It was their success in conforming to male values that enabled their rise to leadership in the first place. In a world in which women held a proportionate share (one-half) of leadership positions, they might behave differently in power.

So we are left with the broader question: does gender really matter in leadership? In terms of stereotypes, various psychological studies show that men gravitate to the hard power of command, while women are collaborative and intuitively understand the soft power of attraction and persuasion. Americans tend to describe leadership with tough male stereotypes, but recent leadership studies show increased success for what was once considered a “feminine style.”

In information-based societies, networks are replacing hierarchies, and knowledge workers are less deferential. Management in a wide range of organizations is changing in the direction of “shared leadership,” and “distributed leadership,” with leaders in the center of a circle rather than atop a pyramid. Former Google CEO Eric Schmidt said that he had to “coddle” his employees.

Even the military faces these changes. In the United States, the Pentagon says that Army drillmasters do “less shouting at everyone,” because today’s generation responds better to instructors who play “a more counseling-type role.” Military success against terrorists and counterinsurgents requires soldiers to win hearts and minds, not just break buildings and bodies.

Former US President George W. Bush once described his role as “the decider,” but there is much more to modern leadership than that. Modern leaders must be able to use networks, to collaborate, and to encourage participation. Women’s non-hierarchical style and relational skills fit a leadership need in the new world of knowledge-based organizations and groups that men, on average, are less well prepared to meet.

In the past, when women fought their way to the top of organizations, they often had to adopt a “masculine style,” violating the broader social norm of female “niceness.” Now, however, with the information revolution and democratization demanding more participatory leadership, the “feminine style” is becoming a path to more effective leadership. In order to lead successfully, men will not only have to value this style in their women colleagues, but will also have to master the same skills.

That is a trend, not (yet) a fact. Women still lag in leadership positions, holding only 5% of top corporate positions and a minority of positions in elected legislatures (just 16% in the US, for example, compared to 45% in Sweden). One study of the 1,941 rulers of independent countries during the twentieth century found only 27 women, roughly half of whom came to power as widows or daughters of a male ruler. Less than 1% of twentieth-century rulers were women who gained power on their own.

So, given the new conventional wisdom in leadership studies that entering the information age means entering a woman’s world, why are women not doing better?

Lack of experience, primary caregiver responsibilities, bargaining style, and plain old discrimination all help to explain the gender gap. Traditional career paths, and the cultural norms that constructed and reinforced them, simply have not enabled women to gain the skills required for top leadership positions in many organizational contexts.

Research shows that even in democratic societies, women face a higher social risk than men when attempting to negotiate for career-related resources such as compensation. Women are generally not well integrated into male networks that dominate organizations, and gender stereotypes still hamper women who try to overcome such barriers.

This bias is beginning to break down in information-based societies, but it is a mistake to identify the new type of leadership we need in an information age simply as “a woman’s world.” Even positive stereotypes are bad for women, men, and effective leadership.

Leaders should be viewed less in terms of heroic command than as encouraging participation throughout an organization, group, country, or network. Questions of appropriate style – when to use hard and soft skills – are equally relevant for men and women, and should not be clouded by traditional gender stereotypes. In some circumstances, men will need to act more “like women”; in others, women will need to be more “like men.”

The key choices about war and peace in our future will depend not on gender, but on how leaders combine hard- and soft-power skills to produce smart strategies. Both men and women will make those decisions. But Pinker is probably correct when he notes that the parts of the world that lag in the decline of violence are also the parts that lag in the empowerment of women.

Joseph S. Nye, Jr., a former US Assistant Secretary of Defense, is a professor at Harvard and the author most recently of The Future of Power.

www.project-syndicate.org

Now, 40 years later, the European Commission has proposed – and French President Nicolas Sarkozy and German Chancellor Angela Merkel have endorsed – a turnover tax on all financial transactions, varying from 0.1% on stocks to 0.01% on financial derivatives like futures and credit-default swaps. If the tax can’t be imposed globally or even Europe-wide, France and Germany will go it alone. Given Sarkozy’s enthusiasm for the tax, there is even talk of France adopting it unilaterally.

But how, exactly, a tax on financial transactions would help to cure Europe’s ills is unclear. According to the European Commission’s own estimates, it would raise only about €50 billion ($65.7 billion) a year, even if imposed throughout the European Union. This is a pittance compared to the eurozone’s debts and deficits, and would fall far short of funding Europe’s permanent rescue facility, the European Stability Mechanism, which is supposed to be capitalized to the tune of €500 billion.

Moreover, the Commission’s €50 billion estimate surely overstates the prospective receipts. If France imposes the tax unilaterally, trading in equities and derivatives will simply migrate to Frankfurt. If it is limited to the eurozone, transactions will move to London. And if it is adopted by all EU member states – a fanciful scenario, given British resistance – the market will simply migrate to New York and Singapore.

European leaders claim that they can create mechanisms to ensure that their residents pay the tax, regardless of where trades are booked. But banks are widely reported to be devising new instruments to enable their clients to avoid the tax. On whom would you bet – the tax authorities or the financial engineers?

If the aim is to augment revenues, a Tobin tax is the wrong tool. Indeed, Tobin designed it to solve an entirely different problem: excessive volatility in currency markets. By discouraging foreign-exchange transactions, Tobin’s proposal sought to promote exchange-rate stability by preventing national currencies from coming under speculative attack.

The irony, of course, is that eurozone members have no national currencies to attack. As members of a monetary union, they enjoy a relatively high degree of exchange-rate stability – far too much stability, in fact. In the current circumstances, with much of Europe lacking competitiveness, a weaker exchange rate is precisely what the continent needs.

European leaders sometimes extend Tobin’s logic from the currency market to financial markets generally. An across-the-board tax on transactions, they argue, would dampen financial volatility.

But the logic behind this conclusion is lacking. What we know is that a tax on transactions would result in fewer transactions. Some investors would exit the market. But which ones – the opportunist speculators, who sell when everyone else is selling, or the contrarian speculators, who do the opposite and stabilize volatile markets?

Maybe a Tobin tax is intended to shrink Europe’s bloated financial sector. In that case, it is, once again, misdirected. Europe’s problem is its banks, which are too big to fail – and also too big to save. A Tobin tax would do nothing to shrink them. On the contrary, by discouraging trading in securities, it would encourage investors to shift their funds into bank accounts and certificates of deposit.

Nor would a Tobin tax address the fact that Europe’s banks are undercapitalized, or that pro-cyclical bank lending amplifies business cycles (and that regulation does too little to restrain this).

Forgive my naiveté, but I have begun to think that politics rather than economics explains European leaders’ enthusiasm for a Tobin tax. Sarkozy can preempt a long-standing proposal of the Socialists in the run-up to this spring’s presidential election. By supporting Sarkozy, Merkel can get in return what she really wants: French support for stronger fiscal rules. And EU leaders can claim that the financial sector is being made to contribute to the costs of Europe’s financial cleanup.

To paraphrase the famous put down of then-Senator Dan Quayle in the US vice presidential debate in 1988: I knew James Tobin; James Tobin was a friend of mine, my mentor, and, for a brief privileged period, coauthor. Tobin would not have been pleased to see his proposal repurposed in this way.

Though no one can say for sure what Tobin would have thought of Europe’s crisis, his priority was always the pursuit of full employment. One suspects that he would have urged European policymakers to dispense with their silly fixation on a financial transactions tax and instead repair their broken banking systems and use all monetary and fiscal means at their disposal to jump-start economic growth.

Barry Eichengreen is Professor of Economics and Political Science at the University of California, Berkeley.

www.project-syndicate.org

A joint survey in January by baihe.com and the matchmaking industry of some 50,000 single people showed that 77 percent of single women believe a man with a monthly income of more than 4,000 yuan ($634.92) is fit for dating. Apparently, a stable income, housing and a decent savings account really matter when a woman is choosing mate.

The survey results may fuel the accusation that single women these days are money hungry. This is a misnomer because the survey doesn’t tell us entire story. Those surveyed were mainly single people from large- and medium-sized cities, and more than three-fourths have higher education. So, it is understandable that these single women both have comparatively higher incomes and income expectations, not only for themselves but also for a potential mate.

Whether we admit it or not, most Chinese women do not want a husband with less earning power, not out of a sense of vanity, but because of the age-old Chinese attitude that a husband who earns less would be intimidated by the higher earning power of his wife.

If the survey results indicate anything, it is the increasing economic competence of Chinese single women and their higher expectations of a potential boyfriend and husband.

Higher expectations include a stable income and housing as the basis for marriage. In this manner, people can improve their status by marrying up the social and economic scale. Cinderella stories existed in traditional Chinese society where women were deemed inferior.

Although great changes have taken place in the status of women, the story survives.

Statistics released last October by the All-China’s Women Federation and the National Bureau of Statistics showed that Chinese women between the ages of 18 and 64 received on average 8.8 years of education, 2.7 years longer than a decade ago, and only three months less than men’s. Some 33.7 percent of women were educated at the senior middle school level or above. Women have an employment rate of 71 percent and make up more than 40 percent of the labor force in agriculture and the service industries.

However, these statistics also show that women still face gender discrimination to varying degrees in finding jobs and getting promotions, and women are not equal to men, at least not in income. The average annual income of women in urban areas is about 67 percent of men’s and for those in the rural areas, the figure drops to 56 percent.

Based on the criteria of the United Nations’ Human Development Report’s Gender Empowerment Measure, a monitor of inequality between men and women in gaining opportunities in the political and economic forum, women in China have less than half the opportunities than men.

China has witnessed robust economic development and earth-shaking social transformation but is still sluggish in meeting the needs of women for equality, especially economically. Thus, marriage has become a mechanism which enables the less advantageous party to share the spouse’ resources, and women, especially the ones that are less economically competent, can still resort to marriage to secure a better standard of living.

The higher expectations of Chinese single women, to a great extent, reflect their eagerness to seek a sense of security on the economic front. The widespread accusations made against women for being money hungry are unfair. Rather it is a reflection of still existing social inequality, and a lack of understanding between the two sexes and all hype that is aimed for sensational effects.

Yet we have to admit that love, although still the dominant impetus for marriage, seems less powerful in reality than the way it is depicted.

Love is supposed to be a chemical reaction. Shakespeare wrote that love is blind and lovers cannot see, while the reality in China is Chinese women are clear-eyed, especially when it comes to marriage.

The second edition of Huang Wanli's biography, Lonely Journey Along the River, was published just before Spring Festival. The book's release itself was news because Huang, as professor of hydro-engineering, is well-known for his opposition to the construction of the Sanmenxia Dam and the Three Gorges Dam. His prediction in 1957 that Sanmenxia Dam would be a disaster has unfortunately come true.

History is compared to a mirror that reflects the errors we have committed. Huang's biography should serve as such a mirror for decision-makers. What I feel strongly after reading the book is not just the audacity with which Huang expressed his opinion on the disastrous consequences of the dam. It is also the reservation I have long had about "pooling resources from all sides to accomplish big things", which Deng Xiaoping said while talking about the advantages of socialism with Chinese characteristics.

The rapid economic growth of the past more than three decades, the grand events such as the Beijing 2008 Olympics and Shanghai 2010 World Expo that China has held, and the country's mega-projects like high-speed railways and the Three Gorges Dam certainly do justice to Deng's remark.

But the great power to pool resources of an entire society can be disastrous if decision-makers make the wrong decision. The positive effect of the advantages is proportionate to the negative effect. That can be seen in the big disasters in the middle of the last century such as the Great Leap Forward, which led to the famine that caused the death of millions of villagers. The failure of Sanmenxia Dam is an even better example.

There is no doubt, though, that Deng referred to big things that should be accomplished in the interest of the people. But there are instances of accomplishing big things just for the sake of big things rather than for the benefit of society as a whole.

Big construction projects have become the major source of corruption because some decision-makers have an eye for big events so that they can profit from them. In this sense, the advantage of pooling resources from all sides to accomplish big things has, to some extent, become the tool of power abuse and corruption especially for some local governments.

That's why governments at all levels need to practice democratic decision-making. No wonder, soliciting public opinion on the Internet or through letters and phone calls nowadays has become a common practice before taking the final decision on big projects or events.

But there is still a long way to go before the entire decision-making process becomes transparent and public opinion is really counted to have a bearing on the future of the country.

In addition, lack of attention or ignorance of small things that have a direct bearing on the quality of people's life is usually seen as a side effect of the government's keenness to accomplish big things. For example, in their rush to build skyscrapers, highways and flyovers, many officials have ignored the importance of the drainage system, which has resulted in the flooding of almost all underpasses during heavy showers in Beijing. Also, an increasing number of sewage treatment plants have been built but very few pipelines have been laid to enable families to flush their toilets with non-potable water.

True, our government can be proud of the advantages of pooling resources of the entire society to build big projects or hold grand events. But it should not forget that the advantages could become disadvantages if opposing views are crowded out of the decision-making process.

If anything, there is need for officials to change their administrative mindset on the advantages of socialism with Chinese characteristics. The people-first principle that the central authorities have reiterated time and again has something to do with such change. What this principle requires is the consideration for small things that are of great concern to the quality of people's life.

Of course, the advantages Deng talked about can always be used to accomplish the most arduous tasks in the country, but for that decision-makers also need to open enough channels to seek opinions and advice to make the right decision.

Huang's biography is an excellent read, particularly for government leaders, for this matter.

The author is a senior writer with China Daily.

(China Daily 02/11/2012 page5)

China needs to solve the problems of migrant workers and provide them every possible help to become permanent members of cities

According to the 2011 data released by the National Bureau of Statistics, China's urban population has reached 51.27 percent of the total, thus exceeding the rural population for the first time in history.

This is a critical point for China's urbanization. From now on, China needs to promote both the quality as well as the quantity of urbanization. For that purpose, the emphasis should be put on making rural people true urban residents, not simply introducing them to cities.

The greatest challenge for this is the problems of migrant workers, whose number has reached 242 million and is still growing. It is their labor that has made China's urbanization possible: a recent survey shows that migrant workers contribute 34 percent to the urbanization of Beijing and 30.6 percent to that of Shanghai, providing most of the labor for sectors such as construction.

But, though the cities have been built on the sweat of their labor, these workers are not formal residents of the cities they toil in. This is because their hukou, or permanent residence permits, are not registered there. We have already heard too many sad stories about migrant workers being discriminated against by urban residents and we do not want to hear more.

The following is an incomplete list of basic public services that exclude or partly exclude migrant workers: compulsory education, pension, medical insurance, lowest living standards insurance and public housing.

The result of such discrimination, which widens the gap between migrant workers and urban residents, has already caused mass incidents in provinces like Guangdong. Urban administrators need to help improve migrant workers' lives to prevent similar incidents in the future.

Such discrimination has not only caused social injustice, but also become a bottleneck to urbanization because it seriously restricts domestic needs by limiting migrant workers' consumption power. A 2010 research shows that the average Engel's coefficient - which measures the percentage of a household's expenditure on food to its total spending - of migrant workers is more than 50 percent, which seriously restricts both the willingness and the ability to consume, in turn curbing domestic demand.

Therefore, to further propel urbanization, China needs to solve the problems of migrant workers by helping them become permanent members of the cities in which they live, with equal access to public services and benefits.

The central government addressed the problem in its 2011 Central Economic Work Conference. In its concluding document, the conference claimed it would orderly guide qualified migrant workers to become permanent urban residents, and solve their education, healthcare and housing difficulties. That is a praiseworthy move for it might break the barrier between urban and rural residents.

In fact, many regional governments have already taken measures to include some migrant workers into their public service systems. For example, many counties in Guangdong and Zhejiang provinces and Shanghai have already started to let migrant workers enjoy endowment insurance like local residents. Some other cities like Nantong in Jiangsu province have also tried to offer public housing to migrant workers.

But to really address the issue the hukou system, the fundamental mechanism of China's urban-rural division, must be reformed to finally end these inequalities. However, local governments cannot make great progress in this regard, as the power to totally reform the hukou system belongs exclusively to the central government. The central government mentioned the problem in 2009 and reiterated it in 2011, but it needs to do more in the future to provide support for such reforms.

While gradually altering the division, the cities also need to change other discriminative policies to diminish the differences between local residents and migrant workers. And more importantly, they need to provide equal education opportunities for the children of migrant workers, for that will prevent inequality from being inherited by the next generation.

Of course, turning migrant workers into true urban residents is a huge program that involves the interests of tens of millions of people, so we cannot expect it to be done all at once. The problems can only be solved step by step, with priority given to those with the most urgent needs.

Metropolises such as Beijing and Shanghai already have extremely large populations, so it is important to guide the population flow into small and medium-sized cities.

But to ensure China's urbanization proceeds smoothly the State needs to take measures to honor its promise of helping turn migrant workers into true urban residents.

The author is a researcher on urban development at the National Development and Reform Commission. The Chinese text first appeared in China Development Observation magazine.

(China Daily 02/11/2012 page5)

Like other holiday seasons, Spring Festival, which ended on Monday, is one of the most expensive times of the year. It is also the time when people shower relatives and friends with gifts. This is not to say that our love affair with gifts is not evident during the rest of the year.

Beijing-based China Gift Industry Research Institute estimates that we spend 800 billion yuan ($127 billion) on gifts every year. It is a lot of money, more than the GDP of some countries, such as Myanmar and Somalia, according to the 2010 statistics of the World Bank.

Chinese people give gifts on many occasions, not all of which are special. Gifts can range from something as simple as fruits to very expensive products. But Chinese avoid gifting items that could embarrass or offend the recipient. For example, they avoid giving clocks because the root of the Chinese word for clock symbolizes death and funerals.

Like most Asian people, Chinese regard giving gifts as part of their culture. It helps develop or strengthen interpersonal relationships. Often, people are invited to dinner and given gifts to build critical relationships and associations.

On the business front, our love for gifts has literally saved many luxury brands. A recent study quotes Bruno Lannes, head of Bain & Company's consumer products and retail practice in Greater China, as saying: "In less than five years, Chinese consumers have transformed from a niche emerging market to a core target for global luxury brands."

But unlike their counterparts in Japan and South Korea, many Chinese buy luxury products to give as gifts. A study of the luxury market by Bain & Company shows that Chinese consumers purchased 212 billion yuan worth of high-end products in 2011. It also shows that more than 30 percent of the luxury goods bought in 2010 and 2011 were meant to be given as gifts.

It is an open secret that building a network of connections is critical to running a successful business. But building networks also requires people to host expensive dinners, entertain guests, and give costly gifts and, sometimes, cash even before starting a business in earnest. Gifts are an important way of earning trust and gaining respect.

Usually, successful people have a network of friends, acquaintances, relatives and associates that are helpful in more ways than one. For such people, giving and getting gifts becomes even more important, all of which leads to a question some companies are not quite sure how to answer: What do you call it then: gift, grease, graft or guanxi?

Businesspeople give high-end products as "business" gifts to show their taste and status. People who receive them feel honored and obliged. No wonder, businesspeople believe gifts are a good way of keeping the wheels moving.

People born in the 1950s and 1960s are the largest group receiving such gifts. They are courted because they occupy most of the important positions in government departments at all levels.

China needs a strict anti-graft and corruption law even though it has rules prohibiting public officials from accepting expensive gifts. And the total value of gifts an official can accept should defined clearly.

It is said that 78 of the 100 bribery cases heard by Beijing Dongcheng District People's Court, Beijing Haidian District People's Court and the Beijing No 1 Intermediate People's Court from 2005 to 2007 were against officials accused of having accepted bribes during the Lunar New Year period.

Moreover, a new type of business is taking shape around the large number of the high-end gifts that officials dispose of for money. In Wuhan, Hubei province, for instance, some stores buy bottles of Moutai, a famous brand of Chinese liquor, for 800 yuan each and resell them for 1,200 yuan. This, by any yardstick, is a very profitable business.

Given that expensive gifts have the potential to influence officials' decisions, the government should ban them from accepting any kind of gift. If you want to express your appreciation and gratitude, a nice card will do, as long as there's nothing inside it but a note.

The author is a senior writer with China Daily.

(China Daily 02/11/2012 page5)

Vice-President Xi Jinping's five-day official visit to the United States from Monday starts this year's high-level interactions between China and the US.

Both countries have attached great importance to Xi's visit, because it is meant to further advance their cooperative partnership based on mutual respect and mutual benefit. The new tone for China-US ties was set by President Hu Jintao and US President Barack Obama when Hu paid a state visit to the US at the beginning of last year.

Xi is expected to settle the details of bilateral relations with US officials so that the two sides can fulfill the commitments they have made and expand their ties further.

China-US relations have progressed beyond imagination and the friendship between peoples of the two countries has deepened greatly since Xi's last visit to the US 27 years ago. That the average one-day bilateral trade volume is more than $1.2 billion today is just one proof for that.

Xi is expected to discuss bilateral ties, and international and regional issues of common concern with high-ranking US officials, including Obama, Vice President Joe Biden and Secretary of State Hillary Clinton. In-depth consultations will help each country understand where the other stands and pave the way for better cooperation.

Xi's visit is also expected to convey to the American leaders China's concerns over politicization of bilateral trade, including restrictions on the export of US high-tech products to China and the obstacles Chinese companies face when it comes to investing in the US. Needless to say that both sides will benefit from their removal.

We hope that Xi's visit helps strengthen mutual confidence between Beijing and Washington and make their interactions smoother.

US arms sales to Taiwan and its attempt to contain China in the Asia-Pacific region are two major factors preventing the deepening of China-US ties. More face-to-face interactions between leaders of the two countries and between the two peoples are needed to remove the "trust deficit". Therefore, the two sides should use Xi's visit to acquaint themselves with each other's sensitivities.

Given that Sino-US ties are important for the rest of the world, too, Beijing and Washington should effectively coordinate over pressing issues such as the global financial crisis, climate change, the Korean Peninsula denuclearization issue, the Iranian nuclear crisis and the Syrian question.

We hope Xi is able to convince the American leaders and people that the only way to move forward is cooperation and respect for each other's interests, for that is the trend of the times. And we believe that Xi's visit to the US will be a great success.

(China Daily 02/13/2012 page8)

The minimum wage in the country will be raised by at least 13 percent a year during the 12th Five-Year Plan (2011-15), according to a State Council special employment promotion plan. The plan stipulates that the minimum wage should be increased to at least 40 percent of an average citizen's income.

Domestic demand cannot be boosted without setting up a rational wage-increment mechanism and a supporting institutional framework. And since the State Council's plan envisages both, it should also be seen as part of the efforts to transform the existing economic development model.

Only when people have enough disposable income will their consumption level increase. The plan rightly lays emphasis on increasing workers' wages, but it is impossible to maintain demand and consumption levels without fair distribution of national wealth.

Statistics show that per capita income in rural areas last year was 6,977 yuan ($1,107), compared to 23,979 yuan in cities. Besides, the average annual disposable income of urban residents is only 21,810 yuan, far from enough to boost consumption.

The consumer price index (CPI) in January increased by 4.5 percent year-on-year, higher than the predicted 4 percent. If the increase of workers' real income is not higher than the inflation, their purchasing power will actually decline.

Wealthy people are not sensitive to the CPI because they have many more sources of income than wage earners.

Studies show that in 1985, the income of the richest group was 2.9 times that of the lowest, but the gap widened to 8.9 in 2009. Some experts think that the real gap is much wider, though.

The lower an average worker's wage, the wider will be the income gap. And if more of the national wealth goes to the rich, the higher will be the chances of it flowing overseas. For example, well-off Chinese spent about $7.2 billion abroad during just the Spring Festival holiday.

So the State Council's plan may not reach its goal if the wealth gap is not narrowed and prices are not controlled.

(China Daily 02/13/2012 page8)

With Vice-President Xi Jinping's visit to Washington, DC, there is hope that a new face will usher in a new era in Sino-US relations.

The simple truth is that the US and China have had few reasons to celebrate their relationship since China's accession to the World Trade Organization in 2001. Efforts to cooperate on issues as wide-ranging as the Democratic People's Republic of Korea, climate change and Iran have fallen well short of full cooperation. Different priorities, approaches and values often undermine the best intentions on both sides. The result is a bilateral relationship that is characterized above all by uncertainty, mistrust and frequent friction.

There is a path forward, but it will necessitate a reorientation in the perspectives of leaders in both countries. First, both sides need to acknowledge that they are unlikely to find themselves aligned closely on most issues. In some cases, the difference will be a matter of degree. For example, while Washington and Beijing agree on certain issues against Iran, they don't agree on how broadly encompassing the sanctions should be.

In other cases, the differences will be more profound, as when the US and China found themselves on opposite sides of the recent draft UN Security Council resolution on Syria. There may even be instances in which we find ourselves actively at cross-purposes, such as in the South China Sea, where China's moves have run up against opposition from some of its neighbors and a consequent enhanced US presence.

Recognizing and admitting openly the differences is the only way to begin developing policies that will either mitigate the potential for serious conflict or expand the opportunities for real cooperation.

Second, perhaps counter-intuitively, both sides should de-emphasize the potential import of the relationship. While talk of a "G2" has subsided, there is still a tendency to raise unrealistic expectations of what the bilateral relationship can accomplish. De-emphasizing the relationship might also help avoid placing issues into a bilateral context when they don't belong there. In fact, most issues should not be understood in the context of the US-China relationship. The decision of Myanmar's president to halt construction of the Myitsone dam or to undertake the first steps toward political reform, for example, is not usefully understood as an issue between the US and China, although it affects both countries.

Similarly, as China becomes more engaged in Afghanistan, there has been a tendency to place Afghanistan in the cross hairs of the US-China relationship to no good effect. The extent to which both China and the US view the bilateral relationship - as one among many bilateral relationships - will help reduce the pressure on the relationship to shoulder more than it can bear.

Third, China and the US must also make an effort to be the standard-bearers for multilateral institutions. Institutions such as the World Trade Organization (WTO) help constrain the worst excesses and impulses of both economic powers and provide an impartial arena for the adjudication of disputes. The rules-based system thrives on understanding that you win some and you lose some.

Fourth, the US and China should identify a long-term common objective that will force both sides to engage deeply and continuously, as they did during China's WTO accession process.

Given the increasing economic stake both countries have in each other, one possibility might be a free trade agreement or bilateral investment treaty, both of which have been proposed by senior US business leaders. Such agreements are likely to take years to negotiate. However, the ongoing talks would force a certain discipline on both sides, offer clear benefits for powerful actors in both countries and provide the potential for meaningful accomplishment.

Finally, as the US and China work to establish themselves as credible leaders in the international community, each has at least one serious deficit to overcome. The US must ensure that it practices what it preaches. Whether on climate change or fiscal responsibility, the US cannot urge others to adopt best practices if it does not have its own house in order. And for China to be an effective global leader, it needs to increase transparency, improve the rule of law and enhance official accountability.

I hope, along with most Americans, that the visit of Xi Jinping will mark the beginning of a more cooperative and mutually beneficial relationship. A more realistic appreciation of both the real challenges and opportunities the relationship confronts will help both China and the US find their way forward.

The author is a senior fellow at and director of Asia Studies in US-based nonpartisan, nonprofit think tank Council on Foreign Relations.

(China Daily 02/13/2012 page9)

US must honor 'One China' principle and China's sovereignty, and both sides should dispel hegemony for the benefit of all

Forty years ago, China and the US made epoch-making contact when former US president Richard Nixon paid an unprecedented visit to China at Beijing's invitation.

At that time, the two powers were entangled ideologically and strategically, and Beijing and Washington were confronting various issues ranging from Taiwan to Vietnam. Both were strategically mired - China was plagued by internal chaos and the US was deeply trapped in Southeast Asia.

However, China and the US both faced the common threat of Soviet expansionism. The Soviets stationed 1 million troops along China's northern border, and the US felt no less security pressure because of the Soviet military presence in East and Central Europe as well as the West Pacific.

In 1971, the two countries seized the chance to engage in what has become known as Ping-Pong diplomacy, when the 31st International Tournament of Table Tennis in Nagoya, Japan, presented the opportunity for China to invite the US team to visit the People's Republic. The success of their visit, and the subsequent visit to the US by a Chinese team, precipitated former US secretary of state Henry Kissinger's secretive trip to Beijing that fall, followed by Nixon's historic visit across the Pacific in the chilly February of 1972, which consequently reshaped the world political landscape.

Nixon's visit attained its climax when China and the US issued their famous Shanghai Communiqu. Since its inception, this communiqu has formed the cornerstone of contemporary Sino-US relations, and is a foundation for peace and stability in the Asia-Pacific region. Though four decades have elapsed, its spirit has continued to inspire the successive generations of both nations to carry on its legacy.

Through the Shanghai Communiqu, China and the US succeeded, in the early 1970s, in forging a strategic consensus between the two countries to jointly seek peace and stability by countering hegemony. Despite their vast ideological gap, China and the US agreed that they shared fundamental interests in peace and stability in the region and aspired to collaborate toward this end.

With the Shanghai Communiqu, China and the US successfully demonstrated the wisdom of their diplomacy by openly agreeing to disagree. The document allowed each party to elucidate its distinct Asia-Pacific policies. It comes as no surprise that after confronting each other for more than two decades, China and the US disagreed on various issues and how they should be handled.

The world has experienced a sea change since the Shanghai Communiqu, and the threat of the Soviet Union, which brought China and the US together, has disappeared. However, the spirit of the Shanghai Communiqu has continued and China and the US have continued to cooperate to counter new common threats such as terrorism, the proliferation of nuclear weapons and the global financial crisis.

The world today is much different from what it was 40 years ago. In addition to the demise of Soviet Union, the Vietnam War that used to divide China and the US has ended, and since the late 1970s China has embarked on its path of reform and opening-up and reaped remarkable economic achievements through international collaboration.

However, the Shanghai Communiqu left the issue of the US arms sales to Taiwan unresolved, and, though both China and US stressed the "One China" principle in it and the two following communiqus, the US has continued to intervene in China's domestic affairs by selling weapons to the island, which harms trust-building between China and the US.

After Vice-President Xi Jinping's visit to the US, overall bilateral relations will be much broader and deeper than they were 40 years ago. China and the US are now collaborating on a more balanced footing on various regional and global matters. Nevertheless, the lack of satisfactory political trust impairs their deep engagement and in fact ferments mutual hedging at the regional and global levels.

While commemorating the 40th anniversary of the Shanghai Communiqu, great leadership is needed to further substantiate the communiqu. The US should honor the "One China" principle and fully respect China's sovereignty, and both nations should open a new page in their relations by having the courage to dispel hegemony for the common good of all.

The author is a professor and director of the Center for American Studies at Fudan University in Shanghai.

(China Daily 02/13/2012 page8)

That 1.3 billion is greater than 13 is a matter of common sense for ordinary people, but not for some "human rights fighters". Since the beginning of 2012, some Western politicians, diplomats and "observers" have made an issue out of the suffering of individual Chinese and pointed figures at China's human rights situation. They have assumed that the majority of Chinese people are living a miserable life and public outcries can be heard everywhere. According to their theory, the stories of a few far outweigh the livelihoods of the 1.3 billion people.

But they forget that it is up to the Chinese people themselves, or rather the majority of the 1.3 billion Chinese, to decide whether they are happy or not. In a recent Pew Research Center poll, 87 percent of the Chinese respondents said they were satisfied with their country's direction, nearly two-thirds said their lives were better now than five years ago and 74 percent said they were optimistic about the future. Like many other polling results, the figures cannot represent the opinions of every Chinese, but at least the majority of Chinese seem more upbeat than their American and European counterparts in the same survey.

It is natural to find some among the 1.3 billion people who are not happy or who complain about their life. The Chinese government hopes every Chinese lives a happy life and is making efforts to make that a reality. But the government still has a long way to go before it attains that goal.

In fact, even developed countries with smaller populations but enormous wealth have a lot more work to do. The social unfairness that exists in Western societies was exposed when French workers went on a strike, when London was terrified by street riots and when protesters held banners that shouted "99 percent versus 1 percent" in the Occupy Wall Street movement in the US.

In China, one most widely accepted belief and also the overarching principle for Chinese is that when there is a conflict of interests, 13 people should be subordinate to 1.3 billion, 0.1 percent to the 99.9 percent and the minority to the majority, because a country as big and populated as China has never before adopted a project to promote modernization and lift hundreds of millions of people out of poverty. Owing to the complexity of the project, it is impossible to accommodate the interests of every individual.

Making its 1.3 billion people lead a happy life is China's ultimate goal, which will make a huge contribution to world peace and development. Over the past three decades, China has made remarkable achievements, but it has also paid a heavy price in terms of environmental pollution, waste of resources and the negative impact on the interests of a few people. These are all problems that appear in the process of development.

But China's history of self-development has a clean record. China didn't loot treasures from other countries or colonize others' land. It didn't trade in African slaves or slaughter Indians. Once it reaches the same development level as the Western countries, China would do better and show more respect for human rights than the West.

In the past when the whole of China was battling poverty, most of its people had no place to live or no clothes to wear and some even died of hunger or illness. Their basic rights to survive were not protected. But the West didn't show any sympathy or care for them. Now that Chinese are becoming rich and their lives are getting better, some Westerners have suddenly become concerned about the "human rights" of a few. Such "compassion" is hard to understand.

If the West really cares about human rights, it should first handle its own affairs properly, show more concern over the rights and interests of the strikers in France and the aggrieved in London, and talk to the big powers that use their might to cause heavy civilian casualties in other countries. If it cares about the human rights situation in China, it should observe more carefully the real life of the 1.3 billion Chinese and adopt a more constructive and cooperative attitude when talking about human rights with China. Only in this way can the West win true respect and friendship of the majority of Chinese.

China is not afraid of talking about human rights. But dialogues can continue only when they are held on the basis of mutual respect.

The author is a Beijing-based scholar of international relations.

(China Daily 02/13/2012 page8)

I. The Rising Prominence of and Severe Tests Facing China-US Relations

After entering the 21st century, especially since the 2008 international financial crisis, the world situation has become increasingly complicated and in flux. Against such a background, two prominent features stand out in today's China-US relations. First, China, after having successfully dealt with the crisis and with continuous expansion of its economy, has promptly come to the center stage of international politics and global governance. Second, the global financial crisis has taken heavy tolls on the economies and financial systems of the United States and the European Union. While the recovery of the Western economies is going to be a tortuous and slow progress, it has been further overshadowed by the ongoing Euro crisis. Under such circumstances, the United States intends to strengthen cooperation with China to overcome its difficulties, and expects China to assume a greater share of "international responsibility." Meanwhile, China is willing to make greater contributions to the restoration of global financial stability and the recovery of global economy with the aim of assuaging the wariness and concerns of the United States and other parts of the world about China's growing power. Now the total size of the Chinese and American economies and the total foreign trade volume of the two countries have amounted to one-third and one -fifth of those of the whole world, respectively. Consequently, the internal development and external strategy of China and the United States, as well as their bilateral relations, have an increasingly important impact on international politics and world economy. Both Chinese and American leaders are of the view that the China-US relationship has become "the most important bilateral relationship in the world."

Meanwhile, the China-US strategic relationship has encountered more stern challenges. Since the end of the Cold War, China-US relations have witnessed ups and downs. After the "9/11" terrorist attacks, counter-terrorism became the top priority of US global strategy, whereas China seized the important period of strategic opportunity and focused on pursuing internal development. Consequently, the China-US bilateral relationship could be characterized as one of "complex interdependence," and a basically stable strategic pattern has been maintained for about a decade. After entering the second decade of the 21st century, the power gap between China and the United States has narrowed considerably and the "structural contradiction" between the two risen. Certain conflict of interests between the two countries in the economic, political and international security arenas tends to gradually grow and escalate, causing both sides to be more vigilant against each other and adding to their mutual suspicions. In particular, the United States recently has, in a high-profile manner, announced its "return to Asia", further strengthened military deployments targeting China, and embarked on the enlargement of the "Trans-Pacific Partnership" (TPP). Some American political figures regard China's rise as the severest external challenge to the United States, and allege that China's refusal to cooperate with the United States on certain international issues is intended to weaken US "global leadership." Those trends have evoked strong repercussions among the Chinese public and political elites, and have caused many to believe that the long-term US strategic intention is to contain China and prevent China from becoming powerful, and that therefore China should take tough counter-measures against the United States internationally. The personages of two countries who wish to strengthen China-U.S. cooperation are gravely concerned that China-US strategic mutual trust has reached a new low.

II. The Main Manifestation of and Deep-rooted Factors for the Absence of China-US Strategic Trust

President Hu Jintao points out, "China and the United States should become cooperative partners that respect and trust each other and should persistently enhance strategic mutual trust." We hold the view that strategic mutual trust in bilateral relations and on the international scene means that both sides deeply understand each other's strategic intention and have a positive expectation of the other side's stances and behavior in areas concerning their respective core interests. To build strategic mutual trust does not mean denial of the objective existence of conflict of interests or ideational differences. Rather, it is, upon the recognition that "common interests are greater than differences", to endeavor to reduce the impact of the conflict of interests and ideational differences on bilateral relations, and to forge the pattern of long-term beneficial interactions. Judging from the present situation of China-US relations, the strategic mutual trust between the two sides still lags far behind the common interests they actually share.

The main manifestation of and deep-rooted causes of the absence of China-US strategic mutual trust are as follows:

Inadequate sincere communication and failure of carrying out some consensuses

In January 2011, President Hu Jintao made a successful visit to the United States when the two sides reached new strategic consensuses of far-reaching significance. At present, the two countries have established many effective dialogue mechanisms at various levels and in various issue areas, notably the highest-level "China-US Strategic and Economic Dialogue". However, some dialogues might have become a mere formality or highly scripted event in which the two sides merely stick to talking points or utter rhetoric. Consequently, there is disconnection between the consensuses reached and real policies or actions that follow. Commenting on the effects of some of the dialogues, former CEO of the American International Group (AIG) Maurice R. Greenberg has recently written in The Wall Street Journal, saying, "I have taken part in a number of dialogues over the years between Chinese economists and trade officials and similarly placed economists and officials on the US side. Every time the results are the same. Each side states its problems and concerns and reports the other side's problems and concerns back to their respective governments. Although the proceedings are cordial, unfortunately nothing is resolved and the frictions that hamper development of a better relationship persist." Many people in both China and the United States share Mr. Greenberg's feeling. Currently, the main problem is not that the number of dialogues is inadequate, or that the scope of the dialogues isn't broad enough, or that the level of dialogues isn't sufficiently high. Rather, the problem is that some of the dialogues have failed to strike home or resolve real problems.

Politicization of economic frictions weakens the basis of strategic mutual trust

Economic and trade relations have for decades served as the "ballast" of China-US relations. However, as the economic and trade frictions between China and the United States grow and are increasingly politicized, the weight of the "ballast" of China-US relations is continuously decreasing and, it may sometimes even become a stumbling stone to strategic mutual trust. The United States has on many occasions threatened to name China as a "currency manipulator" and impose sanctions, continuously imposed restrictions on high-tech exports to China, and set up political barriers to prevent Chinese firms from investing in the United States. As the 2012 US presidential election unfolds, many American politicians, out of their political motivations, have jumped on the wagon of "scapegoating" and blaming US economic woes on China. Those actions will bring all harm and no benefit to strategic mutual trust.

Changes in relative power between China and the United States

Since the 2008 global financial crisis, the power gap between China and the United States has narrowed. The change in the relative power between China and the United States has led to subtle and yet significant psychological changes on two sides. As a result, worries and anxieties on both sides are on the rise. Specifically, there are concerns and worries in many quarters of the United States about the possibility of the rising power of China threatening US preeminence and the "China Model" posing challenges to the "American Model". Meanwhile, the Chinese government remains highly vigilant against America's "export of democracy" and "human rights diplomacy". Moreover, the Chinese political elites are frustrated at the appearance that China's security environment does not seem to have improved as China's power position rises, and are anxious and worried that the United States has been intensifying strategic encirclement along China's periphery. Despite the reassurances by top leaders of both countries that their strategic intentions are not intended to do harm to the other side, it has proven to be difficult, if not impossible, to remove the mutual suspicions and anxieties that have been internalized in both societies.

III. Abandoning Outmoded Thinking and Steering Clear of Obstacles to Establishing China-US Strategic Mutual Trust

If we do not make great efforts to abandon outdated ideas as quickly as possible and to redress the misunderstandings and prejudices, the cornerstone for stabilizing China-US relations will be severely eroded and even shaken.

Abandoning zero-sum thinking

The biggest peril of zero-sum thinking is that it is a "self-fulfilling prophecy" in nature. Some would argue that in modern world history there has not yet been a precedent of peaceful co-existence between a rapidly rising great power and a dominant power seeking to preserve hegemony. However, we believe that historical precedents are set by the people and their countries. The China-US relationship can and must set a precedent for avoiding rivalry for hegemony and for long-term cooperation. To do otherwise will hurt the fundamental interests of the peoples of the two countries and the world at large. As US Secretary of State Hillary Clinton points out, "China represents one of the most challenging and consequential bilateral relationships that the United States has ever had to manage," adding, "(a)t the end of the day, there is no handbook for the evolving China-US relationship. But the stakes are much too high for us to fail." US Vice President Joe Biden also wrote last August in The New York Times that "a successful China can make our country more prosperous, not less". Likewise, US economic recovery and prosperity, as well as the positive, inclusive elements in US domestic and foreign policies are also beneficial to the development of China.

Abandoning cold war mentality

The features of the Cold War mentality are to make political systems and ideological beliefs predetermine the closeness of state-to-state relations, form rivaling military and political alliances, and forge two antagonistic international camps. Some would argue that two countries with distinct political systems and ideologies are bound to head down the irreversible path of confrontation and rivalry. The matter of fact, however, is that forty years of history since the embarking on of the normalization of the China-US relationship has proven that the differences in political and value systems didn't prevent the two countries from moving closer to each other, nor did they stop the expansion of exchanges and cooperation between the two sides. On the one hand, the political differences and diverging values between the two countries will exist for a long time and at times the two sides might even run into fierce debates. On the other hand, the society, culture and domestic politics of the two countries are constantly changing and influencing each other. Little, if any, shadow of the Cold War can be found in today's exchanges between young students from the two countries. Internationally, virtually no country would be willing to get itself involved in the strategic confrontation that might occur between China and the United States; the era of forming two antagonistic ideological and military camps is forever gone. Therefore, a new Cold War between China and the United States is something that can be avoided.

Abandoning arrogance and parochial thinking

Both Chinese and Americans are great peoples in the world, with many merits and good qualities, and together the two peoples have made outstanding contributions to the civilization of mankind. The United States of America, after gaining independence, had quickly joined the ranks of the world's major powers, and in the past sixty plus years, has kept its position as a "superpower." Therefore there must be something praiseworthy in the US experiences of administrating a country. In the past several decades, China has rapidly changed the face of poverty and backwardness, and has in the history of mankind made achievements that have attracted worldwide attention. Therefore there must be undeniable characteristics and advantages in China's political, economic, cultural and value systems. The growth experiences of China and the United States show that both countries have chosen a path of development that suits their own national conditions. Looking into the future, the national power of China and the United States will continue to grow together, the living standards of both peoples will improve continuously, and expanding mutual cooperation will be beneficial to both countries' development. Therefore, both sides should look at each other with a modest rather than arrogant attitude, much less to gloat and jeer at or take pleasure in the other side's domestic difficulties and shortcomings. We shall also acknowledge that there is a tendency in both countries to have insufficient global vision and to overly rely upon their own experiences when dealing with international affairs. Therefore, in dealing with bilateral and international affairs, China and the United States should enhance consultation and coordination, learn from each other's experiences and angle of view, respect the other side's attitudes and stances, and abandon parochial thinking.

IV. Building China-US Strategic Relations with Creative Thinking

Vice President Xi Jinping, in his meeting with former US Secretary of Treasury Henry Paulson last December, pointed out that "history has proven that China-US relations are mutually beneficial and win-win in nature and the common interest and need for cooperation between the two countries far outgrow their differences". Such a statement is a reflection of the creative thinking on the Chinese side regarding China-US relations. Indeed, there are controversial and seemingly irresolvable difficult problems in certain areas of the bilateral relationship, and the two countries hold vastly different positions on certain international security issues. But by applying such a new mode of thinking, one may find that these problems and differences cannot fundamentally hinder the exchanges and cooperation between the two countries on global finance, trade, energy, climate change, public health, and regional hot spot issues, nor can the problems and differences reverse the long-term trend of the continuous expansion of social interactions between the two countries and of drawing on each other's merits in fields such as education, culture, and science and technology. As long as both China and the United States continue to expand the "convergence of interests" in various fields and at various levels and aim to construct a "community of interest", the two countries should be able to build a global partnership based on strategic mutual trust.

To sum up, as Chinese scholars and experts who wish to engage in in-depth strategic thinking, we would like to lay out three main points.

First, the China-US relationship is encountering severe tests and facing the absence of strategic mutual trust. As a Chinese aphorism says, "a boat sailing against the current must forge ahead or be swept downstream." The relationship is just at this critical juncture.

Second, turbulence in this bilateral relationship would cause enormous and unbearable losses of interests of both sides and jeopardize world economy as well as global security. Meanwhile, the profound changes in the international situation and the increasingly growing common interests between the two countries also provide unprecedented strategic opportunities for both sides.

Third, we must adhere to the new type of strategic thinking that holds that "China-US relations are mutually beneficial and win-win in nature". That is, we should not only face squarely the difficulties and obstacles in bilateral relations, but also make efforts to discard outmoded thinking that is unbeneficial to the development of common interests, so as to gradually accumulate and build strategic mutual trust.

Wang Jisi and Jia Qingguo are professors at the School of International Studies, Peking University; Wang Min is a research fellow at Peking University; Qian Yinyi and Bai Chongen are professors at the School of Economics and Management, Tsinghua University.

(China Daily 02/13/2012 page9)

China's trade in January fell the most since the depths of the financial crisis, raising concerns Lunar New Year factory shutdowns do not fully explain a slump in imports and may instead be evidence of a further faltering in demand.

Imports sank 15.3 percent in January versus January 2011 - the lowest since August 2009 - while exports fell 0.5 percent over the same period, the worst showing since November 2009, customs data showed on Friday.

"A fall of over 15 percent in January cannot be entirely explained by the Lunar calendar, and adds weight to the view that economic output is slower than headline indicators might suggest," said Ren Xianfeng, an economist at IHS Global in Beijing.

The figures may sound an alarm-bell on the resilience of domestic demand that has shielded the world's second-largest economy from slackening exports.

But Lunar New Year distortions will make policymakers wary of any hasty reaction, so analysts expect them to assess January and February data combined before deciding whether the current policy of gentle easing needs to be intensified.

The drop in exports and imports left China with a trade surplus of $27.3 billion in January, its biggest in six months and confounding expectations of a further narrowing.

Exports to the European Union, China's top export market, fell 3.2 percent in January from a year earlier after rising 7.2 percent in December, the data shows.

Exports to the United States grew 5.5 percent in January from a year earlier, slowing from December's 11.9 percent rise.

Analysts cautioned against reading too much into a single month of data skewed heavily by the seasonal distortion of the week-long Lunar New Year holiday, which fell in January this year and in February last year. Factories typically shut or run at half speed during this period.

That left economists reading between the lines with the wide range of their forecasts a clear sign of uncertainty.

"The drop in both January exports and imports is not drastic enough to trigger any aggressive move in monetary policy," Sun Junwei, economist at HSBC Global Research in Beijing, said.

"The decision makers may probably look at more indicators for February and other data such as foreign exchange purchase positions to gauge the policy stance."

Analysts at Bank of America/Merrill Lynch said in a client note that making swift adjustments for actual days worked showed the data in a different light.

Under such an adjustment, exports may have grown 28.7 percent from a year earlier and imports may have risen 10 percent given that there were just 17 working days in January compared to 22 working days a year ago.

China's economic expansion struck a 2-year low of 8.9 percent in the last three months of 2011, extending a steady slowdown that had prompted the government in the autumn to switch policy settings to support growth. It has gently eased monetary and fiscal conditions since.

The central bank cut the bank reserve ratio in late November for the first time in three years and is expected to reduce it further to help offset an expected decline in capital inflows. A fall in these inflows hinder money supply growth and so economic growth, analysts say.

The market had anticipated a cut in banks' reserve requirement ratio (RRR) ahead of the Lunar New Year. But the People's Bank of China, the central bank, has opted instead to sue open market operations to inject short-term liquidity into the financial system.

Many analysts reckon a cut in the RRR may now be set back until March after data on Thursday showed annual inflation spiked to a consensus-busting 4.5 percent in January.

"We do not believe there will be imminent direct policy implications from this data because policy makers understand January data are all highly distorted across the board.

"Taken at face value today's trade data should push policy makers to loosen policy further. This may well happen if February year-on-year exports data is still as low but we believe there will be a large rebound to double-digit levels," Yu Song, China economist at Goldman Sachs, said in a note to clients.

"At the same time, the pressures to loosen from trade data are offset by yesterday's CPI data, which surprised on the upside, which taken at face value would point to a need to tighten policy."

Few analysts believe the central bank will cut interest rates this year, with annual inflation staying stubbornly higher than the one-year deposit rate of 3.5 percent.

The slope of China's economic slowdown has been shallow enough for the consensus to emerge that a hard economic landing will be avoided, even though many private-sector economists forecast that 2012 will see the slowest pace of expansion in a decade.

The first quarter of 2012 is widely expected to mark the bottom of China's economic downswing. Signs from the most recent purchasing managers index survey showed a slight expansion of the factory sector in January.

China's minister of commerce, Chen Deming, had flagged that January's numbers would not look pretty in a statement released on Thursday, adding that a stable yuan currency was needed to help Chinese exporters.

In a separate statement, China's State Administration of Foreign Exchange (SAFE) - guardian of the country's $3.18 trillion of official reserves that have become the world's biggest largely on the strength of Chinese exports - said the country's current account surplus would fall sharply in 2012.

SAFE said though that the surplus, which narrowed in 2011 to 2.7 percent of GDP from 5.1 percent in 2010, would remain despite the risk of external shocks to demand and capital flows.

Spats between Hong Kong residents and the mainlanders have been escalating of late. The public feuding first erupted when a video went viral, in which it shows a snack-eating mainland tourist was confronted by a Hong Kong resident on the Hong Kong subway. Although some resort to name-calling and mud-slinging to vent their frustration, many have called for calm and rational dialogue.

@Yingwushihang Writer  Whether it is Hong Kongers' immigration to the US or Canada, or the mainland Chinese birth tourism, both expect to benefit from openness, well-being and harmony of a more civilized society, believing they will eventually be part of it. Please understand the craving for a better life. And as long as they (mainlanders) stay, they will contribute to the construction of a better Hong Kong.

@Wufatian Scholar Whether discrimination or superiority, the root cause actually lies in the "one-child" policy. The pregnant mothers do not go to HK for the permanent residency or for making a big sum. Actually, most of them are wealthy people who attempt to escape from the penalty (of having multiple births). It is just about avoiding the adversity and seeking fortune. Therefore, what we should reflect on is not only the irrationality of some Hong Kongers and mainland people, but also the old-fashioned "one-child" policy.

@Jinshi Urban planning scholar The insults to mainlanders are easy to understand, which actually boils down to "interest": When the Hong Kong residents enjoy the benefit of the mainland's economic boom, they do not want to share the benefit with their mainland compatriots. Same issues can also be seen in some mainland cities, where migrants contribute greatly but are excluded from the city's welfare. The mere difference lies in the solution: These big cities can impose restrictive policies, while some Hong Kong residents can only resort to name calling.

@Woshiximengzhou Deputy Editor-in-Chief Hong Kong Commercial Daily  Hong Kong is ruled by the law, and what mainlanders have done, from shopping and going to hospital, to giving birth and receiving education, is not against the law. Therefore, Hong Kong residents are not justified to criticize them. As for other troubles brought by the openness of border, they should be settled by law.

@1venz Sina Weibo user  Some Hong Kong residents think of mainlanders as "locusts" who break the eco-balance of their environment, but if they were put into mainlanders' shoes, they will find Hong Kong residents are doing the same to the mainland. Every coin has two sides, and bad always come along with good. Hong Kong people had better adjust to the fact rather than waste their energy on the resentment against the mainlanders.

@Zhangyiwu Professor at Beijing University  China's opportunities are also Hong Kong's. Chinese mainland is rising at an amazing speed, but Hong Kong is in need of profound structural adjustments, which is why Hong Kong should not only rely on the mainland, but also adjust to its rise and learn from its path. China's rise is the result of vigorous development of its economy, culture and society as well as the great influence and charm of its big market.

The Hong Kong government has promised to review the number of non Hong Kong residents allowed to give birth in its public hospitals. While tension between some Hong Kongers and mainlanders resulting from this backlash is not likely to disappear easily, we should be optimistic that we still hold a shared sense of identity.

The surveys, released right before Chinese Vice-President Xi Jinping's upcoming visit to the United States on Feb 13, were conducted by China Daily and the Beijing-based Horizon Research Consultancy Group in China, and the Gallup Poll in cooperation with China Daily in the US.

Given the power of public opinion, we hope that the results of these polls will have positive implications for bilateral ties and help decision makers better grasp the dynamics of Sino-US relations and there is no denying that Sino-US cooperation has become wider and deeper in recent years. Exchanges between the two peoples have flourished and the two economies have never been so closely interwoven.

Both countries realize that their cooperation goes well beyond the boundaries of bilateral ties and has now assumed global significance. However, there are still thorny issues arising out of a perceived US disrespect of China's core interests and major concerns. These make for a bumpy road from time to time, and fuel unfavorable public sentiment towards the US in China.

When Chinese President Hu Jintao paid a successful state visit to the US in January 2011, he and US President Barack Obama vowed to "work together to build a cooperative partnership of mutual respect and mutual benefit." Since then, Beijing has been working with Washington to translate this into action.

However, Washington has continued to flout China's concerns and interests with arm sales to Taiwan, Obama's meeting with the Dalai Lama, and taking issue with the exchange rate of the RMB. These are among the major impediments that throw bilateral ties off the track from time to time.

People on both sides of the Pacific recognize the importance of continuing to maintain Sino-US relations. The only way to ensure that these are smooth relations is for the US to cease stepping on the toes of its bilateral partner.

During my two trips to Seattle, Washington, I was often reminded by local government officials and business leaders that this Washington is not "the other Washington".

By saying the other Washington, they meant Washington D.C., home to the White House, Capitol Hill and numerous federal government buildings.

The desire to distance themselves from the Washington that is home to the US political institutions is not surprising if you consider that the public approval rating for the US Congress hit a record low of 9 percent last October according to a New York Times poll. The result of a Gallup poll released on Wednesday looks equally dismal at 10 percent, down from 13 percent in January. The 17 percent average rating for 2011 is also the lowest yearly average rating for the Congress recorded by Gallup.

Americans increasingly use the word "dysfunctional" to describe the deep divide between the Democrats and Republicans in Congress as well as the contention between the Republican-dominated House of Representatives and the White House.

In the tug-of-war between the parties, nothing seems to get done. This will be especially true this year as the two parties are drumming up support for the presidential election.

There will be numerous negative political advertisements in the coming months as Republican presidential candidates attack each other in their bid to secure the nomination. And whoever the Republican nominee is, he will then engage in another round of crossfire with President Barack Obama.

As I walked into a building on K Street in Washington on Thursday to meet a once important political figure, I could feel why everything in this city is so politically charged and ideologically tinged.

In the other Washington on the Pacific Northwest, the mood is different. Governor Chris Gregoire is more pragmatic and down-to-earth in welcoming foreign investors and boosting trade. China has become the largest export market for the state.

I have found a similar down-to-earth attitude among other local leaders I have met over the past two years. During a time of financial crisis and high unemployment, they are eager to create jobs and they have no time to waste in the kind of ideological battle going on in Washington D.C.

In the state of Iowa, which Chinese Vice-President Xi Jinping will visit next week, Governor Terry Branstad is just as pragmatic. He told reporters this week that he intends to talk trade with Xi, who is paying a return visit to Muscatine, a small town he visited in 1985 as Party secretary of Zhengding county of Hebei province. In that year, Branstad was also the governor.

Like many US states, Iowa has benefited enormously from its trade with China. Its exports to China exploded by almost 1,300 percent in the decade from 2000 to 2010. Branstad himself led an Iowa trade mission to China to promote ties in September.

While talks with President Obama, Vice-President Joe Biden and other US leaders in Washington are important to bilateral relations, the local visits will be no less significant, because it will help the American public to understand China better and vice versa.

Watching the daily political dramas coming from Washington D.C. is often like watching a reality TV series. It is the Washington state, which borders Canada and which has many national forests and national parks such as the Mount Rainier and Mount St. Helens, that is closer to real America.

The author, based in New York, is deputy editor of China Daily US edition. Email: chenweihua@chinadaily.com.cn

(China Daily 02/10/2012 page8)

That controlling PM2.5 has been made top priority on the municipal government of Beijing's 2012 list of public welfare projects is indeed beyond many people's expectations.

Yet in spite of the loud public outcry for addressing the deteriorating local air quality, which slid to unacceptable levels late last year, the city is embarrassingly unprepared for such a challenge. After all, the city is yet to declare substantial headway in dealing with the much larger PM10 particles in the atmosphere.

The difficulty in controlling PM2.5 is compounded by the fact that facilities for monitoring the minute particles are just beginning to appear in the city, and there are no agreed standards in existence.

Still, we appreciate the municipal authority's resolve to tackle this issue. This indeed is an overriding concern shared by everyone living and working in the capital.

However, no matter how anxious we are for significant progress in the fight against the invisible fine particles, it will inevitably turn out to be a protracted process. There is no magic formula that will work wonders overnight.

But by committing itself to this difficult mission, the local authorities have displayed the courage to face complaints about slow progress.

And the decision doesn't look impromptu. It is based on a plan that will last to 2020, and has the support of specific environmental improvement steps.

The very first move, planting 133 square kilometers of forests in and around the city this year, does not seem impressive enough for dealing with PM2.5, which derives mainly from motor vehicle exhausts, fuel burning and building sites. But they may prove a useful defense against particulates blown into the city from neighboring areas.

Aside from this welcome greening project, however, all the other measures may meet resistance in implementation.

Disqualifying old vehicles, upgrading motor vehicle emission standards, remodeling boilers, and even imposing stricter dust-control standards at construction sites will raise a cost problem for the individuals and institutions involved.

Making better use of the public transport system is widely believed to be an effective way to reduce air pollution. But for public transport to appeal to more local residents, it has to be convenient enough. That, too, calls for substantial financial investment.

And since one-fourth of the PM2.5 particulates are of non-local origins, the city has to effectively engage surrounding areas in the process. It will not be fair for the city's neighbors to make sacrifices without due compensation. But to what extent, and in what manner, can the city contribute to the industrial restructuring its neighbors need?

This is a question the city cannot afford to ignore.

(China Daily 02/10/2012 page8)

A video posted on the Internet showing a 4-year-old boy exercising in heavy snow wearing only shorts, has drawn overwhelming criticism on his father, a businessman in his 40s from Nanjing, Jiangsu province, who claims his son is brought up "like an eagle".

But however inhuman it might appear, it is just the father's attempt, like any responsible parent, to provide his child with the best environment to grow up happy.

The "eagle father" as he is known and his wife, who quit her job to look after her son, are no exceptions.

They have introduced the seemingly harsh exercise program to help their son who has been diagnosed with many health conditions, such as bleeding in his left ventricle, an abnormal proliferation of blood vessels and swelling of the head, as a result of being born prematurely.

For the boy's parents, improving his fitness and strengthening his self-confidence are important tasks.

The father claims that physical and intelligence tests have shown that the boy's health and intelligence are now better than his peers thanks to the fitness program he follows, and that it has enabled his son to play with the other kids at his kindergarten without any problems. The father also says he does not conduct any training until his son agrees to it.

Despite being an isolated case the boy's upbringing provides an opportunity to reflect on how to bring up healthy kids today.

Many children, mostly the only child in a family, are spoiled and overprotected by their parents and grandparents. The adults are ready to do anything to please their children. These kids, used to relying on their parents, can hardly look after themselves when they grow up.

While the "eagle father's" training should not be encouraged before a credible investigation shows the boy is really benefiting from the training, pediatricians say that exercise can help cure complications arising from a premature birth.

However, it is questionable whether the father in this case has the ability and expertise to design his son's training regime. Such training is probably better left to the professionals.

(China Daily 02/10/2012 page8)

Chinese government is committed to opening-up and does not make technology transfer a precondition for market access

Editor's Note: Minister of Commerce Chen Deming talks about China's trade and investment policies and the cooperation at sub-national levels between China and the United States in an interview with Bloomberg News. The following is the transcript:

Q: The investment environment in China has always been a topic of interest to foreign governments and companies. We've heard some companies complain about the forced transfer of technologies from foreign investors to their joint ventures in China. Is that the case?

A: Shortly after it joined the World Trade Organization, China conducted a comprehensive review of its laws and regulations governing foreign trade and economic relations. It revised those that did not conform to WTO rules and its accession commitments, and canceled stipulations for forced technology transfer. Taking this opportunity, I want to reiterate that the Chinese government is committed to the policy of reform and opening-up and welcomes and encourages, as always, foreign investment. Technology transfer and technological cooperation should be independently decided by businesses and will not be used by the Chinese government as a precondition for market access.

Q: Why has China been strengthening its commercial and investment ties with US states and big cities? Is that because US states are now more open to Chinese investment?

A: A stronger cooperative relationship between China and the United States is in the fundamental interests of both the Chinese and American people, and is also the consensus and shared will of people in all walks of life in both countries.

Thirty-eight and 176 sister relations have been forged between the two sides at provincial and city levels respectively. Exchanges and cooperation across the two countries in trade, investment, energy, the environment and cultural fields are being broadened at sub-national levels.

As the financial crisis is spreading and worsening, all countries are faced with the task of promoting economic growth and creating more jobs. China and the US are seeing greater interest, at both the provincial and city levels, in strengthening trade and commercial ties. Both Chinese provinces and cities and US states share this desire for cooperation. For 29 out of the 50 US states, China has been one of their top three export markets. Forty-five states increased their exports to China between 2007 and 2010, among which 10 states, including Vermont, Oregon and Montana increased their exports to China by over 100 percent. More than 30 investment and trade promotion offices have been opened in China by US states. Last year, the Ministry of Commerce of China set up a "US Pavilion" at the China Import and Export Fair, the biggest and most well-known trade fair in China, which hosted the governments and companies of some US states. They were invited to set up booths and display their products. The invitation was warmly echoed by the US side.

Closer communication and cooperation at sub-national levels serve as a solid foundation for a stronger friendly relationship between China and the US, as well as being a powerful driving force for bilateral trade and economic relations. We are hopeful that the comprehensive cooperation at sub-national levels between China and the US will enable the bilateral trade and economic cooperation to generate more benefits for both peoples.

Q: When visiting some trading companies in Guangzhou, Premier Wen Jiabao said export and import policies will maintain overall stability, should there be any change, it will be more of a support than restraint. Given lackluster demand from the US and Europe, what measures will be taken by the Chinese government to maintain a stable growth in exports?

A: China's foreign trade growth has slowed in the second half of 2011. The export figure in January does not make us optimistic and is expected to show negative growth year-on-year due to Chinese New Year and other factors. Chinese trading companies, particularly small and micro businesses, have come under growing pressure. Foreign trade, an integral part of the Chinese economy, is essential to people's lives and jobs. Premier Wen Jiabao has said on various occasions that the government will adopt measures to help businesses overcome difficulties in order to maintain stable growth in foreign trade.

First, we will keep the overall stability of our export and import policies. For example, we will keep the export rebate policy basically stable and speed up its implementation. We will maintain the overall stability of the renminbi exchange rate and relevant policies for the processing trade. Should there be any fine-tuning, it will be supportive rather than discouraging. Second, we will take concrete measures to ease the tax burden on trading companies and give more financial support. For example, we will speed up the pilot program for replacing the business tax with value-added tax for small and micro businesses and improve the structural tax reduction policy. We will introduce a credit-worthiness assessment and reward system for small businesses and encourage qualified commercial banks to give more credit to small and micro businesses. We will support small and micro businesses raising funds through the stock market and will give more support to export insurance. Third, we will intensify trade promotion. We will step up efforts to build business platforms such as e-commerce, professional markets, demonstration centers at home and abroad, and marketing networks etc. We will vigorously carry out trade and investment promotion events, such as the Canton Fair, China International Fair for Investment and Trade in Xiamen, Expo Central China, and China-Eurasia Expo.

While taking measures to stabilize exports, the Chinese government will continue to energetically expand imports and further balance foreign trade. For example, we will do more to remove unreasonable restrictions against imports, promote import facilitation and formulate financial policies to encourage and support imports.

(China Daily 02/10/2012 page8)

China and Latin American countries have deepened their economic ties over the past decade. According to China's statistics, two-way trade increased from $15 billion in 2001 to more than $ 200 billion in 2011, and Chinese investment in the region grew from $4.6 billion in 2003 to $43.9 billion in 2010. But there is still plenty of room for improvement.

China and Latin America both have benefited from their deepening economic ties. Latin American countries now get higher prices for their raw materials thanks to growing Chinese demand. In return, Latin Americans get inexpensive China-made goods. A steady supply of raw materials from Latin America has helped China's burgeoning economy and expanded the market for its finished products. In fact, China has already become the biggest trade partner of countries like Peru, Chile and Brazil.

While many developed countries are battling with low growth or even recession, China and Latin America nations experience robust growth. They are middle-income countries with a growing middle class, where internal demand is playing a bigger role in fueling economic growth. China and Latin American countries, however, need to strengthen their trade, investment and other economic ties, and expand their people-to-people exchanges.

Chile, Costa Rica and Peru already have bilateral trade agreements with China. But to increase trade, more Latin American countries have to sign similar agreements with China, and seek investment treaties to protect investment on both sides. Regional schemes, like the Asia-Pacific Economic Cooperation forum, which China and some Latin American countries are part of, and the Forum for East Asia-Latin America Cooperation, which has China and most of the Latin American countries as members, should be put to maximum use for even better results.

Perhaps in the not so distant future it is possible to see a Latin America-China summit on the lines of the Africa-China and ASEAN-China summits to bring leaders on both sides closer. After all, China's participation in the Inter-American Development Bank to help finance development projects in infrastructure and other fields is very much appreciated by Latin American countries.

The fact, however, is that some factors still obstruct the development of stronger economic ties between China and Latin America. For one, Chinese and Latin Americans lack proper knowledge of each other's language and culture, and thus temperaments. For business to increase, businesspeople on the two sides have to have a better understanding of their differences. Confucius Institutes are playing an important role in spreading Chinese language and culture in many Latin American countries. But Chinese people, too, should have knowledge of the languages and cultures of Latin America, to ensure which governments of the region should make greater efforts.

Increasing people-to-people exchanges, from the students to the highest level, is also necessary to help Chinese companies better understand Latin America and have a good relationship with the communities there.

Also, China has to diversify its investment from the primary sector to the manufacturing sector to make more value added goods in the region. The domestic markets of Latin American countries are growing and many of them have a host of preferential trade agreements with North American and European countries. Chinese companies could take advantage of these agreements to make goods for those markets.

Latin American countries now sell mainly primary goods to China and buy manufactured products from it. China should continue opening up its market and Latin American companies should endeavor to sell more of their products to China to establish a more symmetric trade pattern, which would benefit both sides greatly.

It takes a long time for people to travel from China to Latin American countries and vice-versa, with the dearth of direct flights making matters worse. So China and the region's countries should start more direct flights and simplify the visa procedures to promote business trips and tourism.

To continue their economic growth and become high-income economies, China and Latin American countries should develop their own technologies and produce more added value products. This will reduce their dependence on advanced countries, and perhaps more importantly, help increase the salaries of their workforce. The two sides should also upgrade their educational systems by increasing the number of top class universities that can produce talents with mastery of the most advanced technologies. Besides, they should take urgent steps to reduce the growing income gap to ensure that everyone shares the fruits of economic growth.

China, on its part, should address the imbalance between consumption and investment, and take measures to increase consumption as a proportion of aggregate demand by raising workers' wages, increasing social service facilities and expenditure - to improve social security - and allow a gradual revaluation of the yuan. And Latin American countries should make greater efforts to increase social mobility in areas where indigenous people still face social and economic discrimination.

The author is a professor of economics at San Marcos National University in Lima, Peru.

(China Daily 02/10/2012 page9)

Would the world be more peaceful if women were in charge? A challenging new book by the Harvard University psychologist Steven Pinker says that the answer is "yes".

In The Better Angels of Our Nature, Pinker presents data showing that human violence, while is still very much with us today, has been gradually declining. Moreover, he says, "over the long sweep of history, women have been and will be a pacifying force. Traditional war is a man's game: tribal women never band together to raid neighboring villages." As mothers, women have evolutionary incentives to maintain peaceful conditions in which to nurture their offspring and ensure that their genes survive into the next generation.

Skeptics immediately reply that women have not made war simply because they have rarely been in power. If they were empowered as leaders, the conditions of an anarchic world would force them to make the same bellicose decisions that men do. Margaret Thatcher, Golda Meir and Indira Gandhi were powerful women; all of them led their countries to war.

But it is also true that these women rose to leadership by playing according to the political rules of "a man's world". It was their success in conforming to male values that enabled their rise to leadership in the first place. In a world in which women hold a proportionate share (one-half) of leadership positions, they might behave differently in power.

So we are left with the broader question: does gender really matter in leadership? In terms of stereotypes, various psychological studies show that men gravitate to the hard power of command, while women are collaborative and intuitively understand the soft power of attraction and persuasion. Americans tend to describe leadership with tough male stereotypes, but recent leadership studies show increased success for what was once considered a "feminine style".

In information-based societies, networks are replacing hierarchies, and knowledge workers are less deferential. Management in a wide range of organizations is changing in the direction of "shared leadership", and "distributed leadership", with leaders in the center of a circle rather than atop a pyramid. Former Google CEO Eric Schmidt said that he had to "coddle" his employees.

Even the military faces these changes. In the United States, the Pentagon says that army drillmasters do "less shouting at everyone," because today's generation responds better to instructors who play "a more counseling-type role". Military success against terrorists and counterinsurgents requires soldiers to win hearts and minds, not just break buildings and bodies.

Former US president George W. Bush once described his role as "the decider," but there is much more to modern leadership than that. Modern leaders must be able to use networks, to collaborate, and to encourage participation. Women's non-hierarchical style and relational skills fit a leadership need in the new world of knowledge-based organizations and groups that men, on average, are less well prepared to meet.

In the past, when women fought their way to the top of organizations, they often had to adopt a "masculine style", violating the broader social norm of female "niceness". Now, however, with the information revolution and democratization demanding more participatory leadership, the "feminine style" is becoming a path to more effective leadership. In order to lead successfully, men will not only have to value this style in their women colleagues, but will also have to master the same skills.

That is a trend, not (yet) a fact. Women still lag in leadership positions, holding only 5 percent of top corporate positions and a minority of positions in elected legislatures (just 16 percent in the US, for example, compared to 45 percent in Sweden). One study of the 1,941 rulers of independent countries during the 20th century found only 27 women, roughly half of whom came to power as widows or daughters of a male ruler. Less than 1 percent of 20th-century rulers were women who gained power on their own.

So, given the new conventional wisdom in leadership studies that entering the information age means entering a woman's world, why are women not doing better?

Lack of experience, primary caregiver responsibilities, bargaining style, and plain old discrimination all help to explain the gender gap. Traditional career paths, and the cultural norms that constructed and reinforced them, simply have not enabled women to gain the skills required for top leadership positions in many organizational contexts.

Research shows that even in democratic societies, women face a higher social risk than men when attempting to negotiate for career-related resources such as compensation. Women are generally not well integrated into male networks that dominate organizations, and gender stereotypes still hamper women who try to overcome such barriers.

This bias is beginning to break down in information-based societies, but it is a mistake to identify the new type of leadership we need in an information age simply as "a woman's world". Even positive stereotypes are bad for women, men, and effective leadership.

Leaders should be viewed less in terms of heroic command than as encouraging participation throughout an organization, group, country or network. Questions of appropriate style - when to use hard and soft skills - are equally relevant for men and women, and should not be clouded by traditional gender stereotypes. In some circumstances, men will need to act more "like women"; in others, women will need to be more "like men".

The key choices about war and peace in our future will depend not on gender, but on how leaders combine hard- and soft-power skills to produce smart strategies. Both men and women will make those decisions. But Pinker is probably correct when he notes that the parts of the world that lag in the decline of violence are also the parts that lag in the empowerment of women.

The author, former US assistant secretary of Defense, is a professor at Harvard and the author most recently of The Future of Power.

Project Syndicate

(China Daily 02/10/2012 page9)

Perhaps the creators of the family planning slogan, "fewer kids, more pigs", used kids and pigs together so that it would have a greater impact on semiliterate villagers, but in doing so some rural officials exposed their attitude toward life.

The decision of the Hainan provincial government to remove such ads deserves praise and should be followed by other provinces and regions. In fact, apart from family planning, such absurd ads have also been used by other departments' publicity. For example, some buses have signs saying, "Spit outside" and some power department warning signs read, "Touch high voltage cable, you will die; if you don't die, you will be severely punished".

Such signs have not only failed to generate the intended response, but also become the butt of jokes. These slogans reflect how some officials in the past tried to solve problems through simple and, at times, crude ways.

They also make it important for today's officials to keep the "people-oriented" principle in mind. Though officials have started eschewing their old ways, they are still far from being adept at communication skills and sophistication.

(China Daily 02/10/2012 page9)

That fresh college graduates are finding it increasingly difficult to get a job has become common knowledge. There are three factors that have led to the situation.

First, college diplomas have lost their value to a certain extent because of the rising number of college graduates over the years. Second, not all courses taught in universities meet the demands of enterprises. And third, most fresh graduates lack the necessary skills, training and practical knowledge needed to get a job because very few of them participate in social practices.

There are more college graduates than the job market can absorb and the employment market suffers from serious structural contradictions. But there is a shortage of skilled workers, that is, craftsmen. Given the situation, graduates should undergo proper skill training to land a nice job.

But how will graduates learn the skills that are in demand? First, vocational education should be reformed. Universities, too, need to deepen their educational reform and set courses in accordance with enterprises' need. Also, college students should visit workshops to gain practical knowledge and even master skills.

Second, students should be encouraged to broadly engage in different social practices such as serving as volunteers, so that they can develop their organizing capacity, speechmaking ability and operational skills to create a deeper impression on interviewers.

And finally, local authorities should allocate more funds to support training programs for graduates and to help graduates start their own business.

(China Daily 02/10/2012 page9)

I agree that independent and small bookstores should be preserved and protected in China. As an American college student, I can attest to the fact that the Unites States is facing similar struggles to save the book industry. The American bookstore chain, Borders, recently declared bankruptcy and most of its stores have been forced to close down. This is happening not only to big chains, but to small, independent bookstores as well.

I believe that going to a physical bookstore can increase one's love for reading. In a real bookstore, you can physically see, touch and even smell the books. It gives you the freedom to browse through selections and to even read a portion of a book before deciding to buy it. You would not be able to do any of these things at online bookstores.

One way that China can increase the popularity of bookstores is to have well-known authors endorse them. For example, in the United States, some well-known authors go on tours to promote their books and meet their readers at bookstores. This helps independent bookstores to make a profit, get recognition and stay in business.

Brianna Hendrick, via e-mail

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 02/10/2012 page9)

Mitt Romney just can't shake his difficulty attracting conservatives. And that reality is undercutting his effort to cast himself as the inevitable Republican presidential nominee and prolonging a race that each day exposes deep divisions within the party.

Newt Gingrich also now faces a fresh challenge to his claim that he's the chief conservative alternative to Romney, the GOP front-runner.

Those were the big takeaways from Rick Santorum's surprise victories Tuesday night in Colorado, Minnesota and Missouri - which, for now at least, keep his struggling candidacy alive.

"Conservatism is alive and well in Missouri and Minnesota," the former Pennsylvania senator told cheering supporters before the Colorado results were known. "I don't stand here to be the conservative alternative to Mitt Romney. I stand here to be the conservative alternative to Barack Obama."

Santorum broke a four-state losing streak by successfully pitching himself as the only true conservative in Tuesday's races.

The results focus attention on Romney's and Gingrich's weaknesses, while underscoring the degree to which the GOP primary battle is likely to stretch well into the spring and perhaps even the summer. The outcomes also are likely to detract from Republicans' efforts to lambaste President Barack Obama.

While Santorum may get a short-term boost of momentum, it's unclear whether the cash-strapped candidate has the resources to capitalize quickly on the wins and compete against Romney's national political machine.

Santorum is a candidate with a post office box as a national headquarters. He's using volunteers to handle his scheduling. And he has virtually no staff to help turn momentum into votes in the critical Super Tuesday contests that are now four weeks away.

His rivals face problems of their own.

Romney has struggled to win over conservatives, who for years have viewed him skeptically for his shifts and reversals on issues they hold dear, like abortion and gay rights.

Romney hadn't lost a nomination fight since his second-place finish in South Carolina 17 days ago. He went on to comfortably win the Florida primary and Nevada's caucuses. And polling in those two states suggested that Republicans of all stripes - social conservatives, tea party activists and those in the mainstream - had finally begun to set aside doubts about his conservative credentials.

Romney used that, and his back-to-back victories, to his advantage. He had started to portray himself as the presumptive nominee as establishment Republicans rallied behind him.

But in recent days, Romney sensed a Santorum surge in Colorado, Minnesota and Missouri, and started to court social conservatives with get-tough positions against abortion and gay rights as he worked to convince them that he was pure on key issues despite his more moderate positions of the past.

It didn't work - and he recognized as much in a brief speech to a partially empty room of supporters gathered in Denver as the results came in.

"This was a good night for Rick Santorum," a more subdued Romney said. But he added, "We'll keep on campaigning down the road, but I expect to become our nominee with your help."

Gingrich, for his part, did his best to ignore one of his worst days in the campaign, trailing far behind Santorum and Romney.

The former House speaker spent the day campaigning in Ohio and staying out of sight when results rolled in from Minnesota, Colorado and Missouri. He had no immediate comment on an outcome that put into question his standing in the race.

The first day of multi-state voting in the GOP race exposed a glaring deficiency for Gingrich: He lacked the resources and organization to compete. He's trying to project strength heading into a series of Super Tuesday elections on March 6, but his decision to barely campaign in the trio of states this week gave Santorum the opportunity to suggest that he's once again become the anti-Romney candidate.

Both Romney and Gingrich clearly knew it would be a bad day.

Romney political director Rich Beeson released a memo early Tuesday that noted that Arizona Sen. John McCain lost 19 states on the way to capturing the GOP presidential nomination in 2008.

And, on Monday night, Gingrich predicted, "I think that Santorum's going to have a pretty good day." Gingrich also started making excuses for a poor showing.

"I stayed in Florida to fight it out," Gingrich said. "He took the same amount of time and energy and he came to Minnesota and Missouri and Colorado. For him, that was the right decision."

The race now moves to Maine, whose low-profile caucuses conclude Saturday, before heading to Arizona and Michigan. Romney is poised to do well in Michigan, given his family ties to the state his father once governed.

Ultimately, history may reveal that Tuesday's results were little more than an embarrassing blip for a Romney campaign that holds massive advantages over underfunded and under-organized rivals. But it may take months to find out.

]]> 2012-02-09 16:26:02 http://debate.chinadaily.com.cn/debate.shtml?id=122 2012-02-09 11:14:35 http://bbs.chinadaily.com.cn/thread-731002-1-1.html 2012-02-09 09:34:40 http://bbs.chinadaily.com.cn/thread-730581-1-1.html 2012-02-09 09:34:40 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564929.htm

Vice-Premier Li Keqiang's emphasis on the fair distribution of affordable housing on Monday points to the weak link that will have a bearing on the fulfillment of the government's goal of providing low-income residents with decent homes.

Given the reports of frequent instances of people cheating to obtaining various types of welfare accommodation, it is necessary to set up and gradually optimize a transparent and efficient plan to review applications for such houses, and effectively remove those applicants whose incomes raise them above the threshold for receiving such welfare.

The central government has implemented strict policies to make sure that local governments make real efforts to construct affordable housing. In 2011, construction started on 10 million units of affordable housing nationwide and the number of units built this year will be at least 7 million.

The message is that the government attaches great importance to the role such welfare plays in redistributing social wealth in a fair and just manner. Such welfare is also expected to contribute to social and political stability, which China badly needs for further economic growth and social progress.

This explains why Li said that the fair distribution of such welfare housing is the lifeline for sustainable development. Li also said that those found cheating to obtain such housing should be made to pay dearly for their cheating.

Frankly speaking, it is not easy for ordinary residents to cheat on such matters. Cheating is often combined with abuse of power or the malpractices of the rich or advantaged. In the scandals exposed in Shenzhen, Guangdong province, some living in affordable or low-rent homes also owned luxury cars or luxurious houses.

Making the entire process of affordable housing distribution transparent would be the most effective way of preventing cheating and under-the-table deals. The vice-premier stressed that the distribution should be placed under the supervision of the public and the media.

It is much harder to achieve the fair distribution of welfare housing than it is to build them. It tests the governing capability of both the central and local governments. It is something that the government must do well or it will tarnish its reputation and affect the stability of this country.

With the central government's resolve, there is reason to believe that most local governments have the experience and will to do a good job.

(China Daily 02/09/2012 page8)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564924.htm

Government agencies have been encouraged to stop using official vehicles one day a week based on their license plate numbers, according to a notification for an energy-saving and emissions reduction program to be implemented across the country.

Limiting private vehicle use according to plate numbers is a measure already introduced for private vehicles in some big cities in a bid to ease traffic congestion.

The new program, part of government efforts to protect the environment and promote sustainable development, includes official vehicles in traffic-control measures for the first time.

The measure clearly signals that official vehicles do not have a higher status than private vehicles on the road, and is a timely correction of the entrenched impression that official vehicles enjoy privileges over private vehicles.

The action is also welcome as it will bring tangible emission cuts. There are a huge number of official vehicles on the roads, even if the exact number is still unknown.

The government is encouraging all civil servants to walk, ride bikes and use public transport according to the distance from their residences to their offices. By so doing officials will set a good example for citizens and help promote more environmentally friendly commuting.

But this program is far from enough. It should be enforced rather than merely encouraged. Easing officials' reliance on official vehicles is a necessary preparation for official vehicle reform in the future.

The government should draft and implement relevant regulations to strictly control the number of official vehicles. Otherwise users of official vehicles can simply buy more vehicles in order to dodge the restriction. Some families in Beijing, for example, purchase a second car so they can drive on days when they are restricted from using the first.

Since it is currently difficult to differentiate official vehicles from private vehicles, the administration of official vehicles urgently needs to standardize and unify distinguishing signs for these cars purchased and run with taxpayers' money.

The enforcement agencies should also be empowered to monitor and punish those using official vehicles that break the rules.

Only when all these supporting rules and measures are made and enforced, can the proposal fulfill its purpose.

(China Daily 02/09/2012 page8)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564919.htm

Short-term capital flows make exchange rate more volatile, posing new challenges for decision-makers in China and US

From July 2005 until December last year, China's renminbi appreciated steadily. The exchange rate then unexpectedly fell, hitting the bottom of the daily trading band set by the People's Bank of China for 11 sessions in a row. Though the renminbi has since returned to its previous trajectory of slow appreciation, the episode may have signaled a permanent change in the pattern of the exchange rate's movement.

As long as China was running a trade surplus and receiving net inflows of foreign direct investment, the renminbi remained under upward pressure. Short-term capital flows had little impact on the direction of the renminbi's exchange rate.

There were two reasons for this. First, thanks to an effective, albeit porous, capital-control regime in China, short-term "hot money", capital coming into China aimed at arbitrage, rent-seeking, and speculation, could not enter and then leave freely and swiftly. Second, short-term capital flows usually would strengthen rather than weaken upward pressure on the renminbi's exchange rate, because speculators, persuaded by China's gradual approach to revaluation, bet on appreciation.

So why, if China was still running a decent current-account surplus and a long-term capital surplus, did the renminbi suddenly depreciate, forcing the central bank to intervene, although not very vigorously, to prevent it from falling further?

Many economists outside of China have argued that the December depreciation resulted from betting by investors that Chinese policymakers, facing the prospect of a hard landing for the economy, would slow or halt currency appreciation. But if that were true, we would now be seeing significant long-term capital outflows and heavy selling of the renminbi for US dollars in China's foreign-exchange market.

We see neither reaction. More importantly, the renminbi's slow appreciation resumed fairly promptly after December's dip, while investors' bearish sentiments about China's economy have remained consistent.

In fact, the renminbi's sudden fall in December reflects China's liberalization of cross-border capital flows. That process began in April 2009, when China launched the pilot Renminbi Trade Settlement Scheme, which enables enterprises, especially larger ones, to channel their funds between the Chinese mainland and the Hong Kong Special Administrative Region. As a result, an offshore renminbi market, known as the CNH market, was created in Hong Kong alongside the onshore market, now dubbed the CNY market.

In contrast to the CNY market, the CNH is a free market. Given expectations of renminbi appreciation and a positive interest-rate spread between the mainland and Hong Kong, the renminbi had a higher value in dollar terms on the CNH market than on the CNY market. That difference led to active exchange-rate arbitrage by mainland importers and multinational firms - one form of capital inflows from Hong Kong to the mainland. Correspondingly, renminbi liabilities owed by mainland Chinese and multinationals increased, as did renminbi assets held by Hong Kong residents.

Exchange-rate arbitrage by mainland importers and multinationals creates upward pressure on the CNY market and downward pressure on the CNH market. In an economy with flexible interest and exchange rates, arbitrage eliminates the exchange-rate spread quickly. But, because China's exchange rate and interest rates are inflexible, the CNH-CNY spread persists, and arbitragers are able to reap fat profits at the economy's expense.

Last September, however, the financial conditions in Hong Kong changed suddenly. The liquidity shortage caused by the European sovereign debt crisis led developed countries' banks - especially European banks with exposure in Hong Kong - to withdraw their funds, taking US dollars with them. As a result, the CNH fell against the dollar. At the same time, the shortage of dollars had not yet affected the CNY, which remained relatively stable.

The CNH therefore became cheaper than the CNY. Consequently, mainland importers and multinationals stopped buying US dollars from the CNH market and returned to the CNY market. At the same time, mainland exporters stopped selling dollars in the CNY market and turned to the CNH market.

The dollar shortage created depreciation pressures on the CNY, which China's central bank declined to offset. The CNY was thus bound to fall, which it did last September.

Reverse arbitrage meant capital outflows from the mainland. Correspondingly, renminbi liabilities owed by mainlanders and multinationals decreased, as did renminbi assets held in Hong Kong. In fact, increases in financing costs and uncertainty about renminbi appreciation prompted a partial sell-off of renminbi assets by Hong Kong residents.

In short, because the Renminbi Trade Settlement Scheme made cross-border capital movements much easier, short-term flows have become a major factor in determining the renminbi's exchange rate. External shocks affect the offshore exchange rate first, and then feed through to the onshore exchange rate.

The renminbi will continue to appreciate in the near future, owing to strong economic fundamentals, but the inherent instability of short-term capital flows will make its exchange rate more volatile. This change is bound to pose new challenges for decision-makers in the United States and China, particularly as they engage in a fresh round of debate about China's exchange-rate policy.

The author is president of the China Society of World Economics and a former member of the monetary policy committee of the People's Bank of China. Project Syndicate

(China Daily 02/09/2012 page8)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564914.htm

Today China is the news.

The country's rise as an economic power has been one of the hottest topics in the world. Catching the trend The Economist published a special section on China in its Jan 28 issue, the first time in six decades that it has devoted a separate section to a single country. The last time it did so was in 1942 when it covered the United States. "China's emergence as a global power justified giving it a section of its own," says the magazine's Editor-in-Chief John Micklethwait.

I have often heard odes to China's progress in recent years.

An Oxford postgraduate once told me that during her one year of study at the university, rarely had her classes been concluded without the professor mentioning China. A Siemens executive told me matter-of-factly that he needed a new map of Beijing every several months to avoid getting lost in the city's fast-changing landscape. During my visit to the International Herald Tribune's Paris office in December, its publisher, Stephen Dunbar-Johnson, recalled his recent visit to Shanghai and how impressed he was by the construction boom in the town - "I could smell cement in the air."

Such words sound pleasant to Chinese citizens, who have been desperate for the restoration of the country's glory, lost only in modern history. But it would be naive to get carried away with the idea that China will reign supreme in the 21st century, as some people believe.

For decades, the West has viewed China's rise with mixed feelings of curiosity, doubt, disbelief and awe. Pessimists have long forecast an abrupt end to the country's ascendancy, drawing on what they see as evidence ranging from ideological impediment to public discontent, in addition to economic woes in the State and private sectors. Such views were epitomized in The Coming Collapse of China by Gordon Chang published more than 10 years ago, which predicted the country had only several years to go before its collapse.

Nothing could be farther from the truth.

A decade has passed, and China, instead of collapsing, is booming. As the country emerges as the world's second largest economy and largest exporter, more optimistic views have started to dominate.

Yet China is too large, too ancient and too complex a country to make any arbitrary judgment on it. It is a paradox of affluence and scarcity, a combination of modernity and backwardness, a commonwealth of first and third worlds.

While the country held the world's most extravagant Olympic opening ceremony, has sent men into space, and has the fastest high-speed trains, it still struggles to provide enough food and clothing for 30 million people who live in abject poverty, and to provide adequate social security aid for 60 million disabled people.

It guzzles more than 40 percent of the world's total production of coal, one-third of the total steel production and nearly half of the cement, yet it lags far behind in efficient use of energy, which means it has to consume two times more resources than the developed world, and eight times more than Japan, to turn out the same amount of industrial output, casting a shadow on the sustainability of its development.

Everything seems to be made in China, yet the country has profited little from its position in the global supply chain, to the detriment of its labor force and environment.

This is best illustrated by a recent report in The New York Times, which attempted to capture how value moves in global networks by using Apple's iPad and iPhone as examples. It points out that while these products are made in China, the country makes very little money from these popular products and the primary benefits go to the United States. "Only about $10 or less in direct labor wages is paid to Chinese workers" - often subjected to poor treatment - for each unit sold in the US at a price of around $600. "China's role in the world supply chain", the report concludes, "is much smaller than the casual observer would think".

Nothing has really changed in this respect. More than 10 years ago the Los Angeles Times carried a story about the Barbie doll, which pointed out that China gained only 35 cents in service fees for a doll with an export price of $2 and which was sold at retail price of $9.99 in the US market.

For China to become a real superpower, there is still a long way to go.

The author is a senior writer with China Daily.

(China Daily 02/09/2012 page8)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564909.htm

Because this year will see a presidential election in the US and a new leadership will take over the helm in China, major breakthroughs in US-China relations are not likely during 2012. Nevertheless, the agenda for Chinese Vice-President Xi Jinping's Feb 14-15 visit to Washington will be packed with discussion of important issues at a time when future developments regionally and globally are less predictable than usual.

This is a year of political change throughout Asia, with upcoming elections in the Hong Kong special administrative region, the Republic of Korea and Russia. An election could be held in Japan in 2012, too. In addition, the Democratic People's Republic of Korea is experiencing a succession as Kim Jong-un assumes power after his father Kim Jong-il's sudden death in December. Never before have so many key countries in the region faced possible leadership changes during the same 12 months.

Inevitably, national leaders in all these countries are now especially focused on domestic developments and may become pricklier on international issues that have domestic resonance. Great uncertainties over what will happen in Europe and its potential knock-on effects on the global economy add to the questions about major outcomes during 2012.

Xi Jinping's visit takes place three months after US President Barack Obama's November trip to Honolulu and Asia. On that trip Obama affirmed the US' determination to maintain a leadership role in the region over the long term. This has sparked considerable discussions on the potential implications for US-China relations.

While in the US capital, Xi will meet not only with US Vice-President Joe Biden but also with President Obama and key Cabinet secretaries. These meetings will address serious issues from trade to bilateral investment to Iran and nuclear proliferation to security matters within Asia, among others. Each of these issues has both an immediate dimension that will be the focus of attention and the staying power to impact the long-term strategic relationship between the US and China.

Even with this long list of substantive issues, the most significant aspect of Xi's visit is one that is likely to be less visible - that it begins to lay the groundwork for personal mutual understanding between a member of next generation leadership and a US president who might remain in the White House until January 2017. This mutual understanding - the kind of personal stock taking that political leaders value highly - is especially necessary if the US and China are to address successfully the most serious problem dogging the future of their relations, distrust over each side's long-term intentions toward the other.

Some in China look at Obama's November 2011 trip to Asia and see evidence to bolster their suspicion that the US seeks to constrain or even disrupt China's rise. Some in the US look at China's economic and security policies, and see in them an approach that presages efforts to promote America's decline to assure China's rise.

A few hours of face-to-face meetings will not change these underlying suspicions. But they may permit the leaders on each side to begin to gain a personal feel for the sincerity, ways of thinking and genuine concerns of their counterparts. That is a necessary first step toward allaying deep concerns and building trust. Without some level of personal understanding, the chances of both sides' slipping into mutually reinforcing negative assumptions increase greatly.

Given the pressures of domestic politics in both countries, it is not realistic to expect concrete commitments on long-term, controversial issues to be concluded during Xi Jinping's visit. But to lay the groundwork for effective relations in 2013 and beyond, Vice President Xi and his White House hosts should allocate time specifically to discuss how to develop deeper dialogues than the two sides now have on the most critical issues that will strongly impact long-term relations if there is no mutual understanding on them. The two such key issues are:

First, what are the respective military deployments in Asia that will both permit China to protect its vital interests and allow the US to meet its existing security commitments to friends and allies in the region? Failure to increase understanding on this core issue risks mutual escalation in military deployments in the region, ultimately increasing costs and reducing security for both sides.

Second, how can both sides engage to reduce the chances of cyber conflict that escalates rapidly to the point where it produces major damage? Cyberspace is a relatively new domain that has rapidly moved to the center of US-China relations and is greatly damaging mutual trust. It will inevitably require a long time for discussions on this issue to mature. Given the risks, it is time to upgrade the dialogue on this issue.

In sum, this is a period of exceptional change in the Asia-Pacific region, and the US and China are the two most consequential players. They can manage their key short-term problems but need to do a lot of work to improve the chances of maintaining a constructive long-term relationship. Vice President Xi's visit can contribute significantly to laying the groundwork in terms of personal mutual understanding at the highest levels.

Finally, Xi's public appearances can create enduring popular images of him that can make it easier for him to manage US-China relations once he takes over the helm. I remember well Deng Xiaoping's trip to a rodeo in Texas in 1979. When Deng put on a "ten gallon" cowboy hat, he created an image that made him seem far more natural and understandable to the American people. Every media opportunity - especially those when Xi travels far from Washington to the American heartland of Iowa and west coast metropolis of Los Angeles - will be important.

The author is director of the John L. Thornton China Center, and a senior fellow in the Foreign Policy and the Global Economy and Development Programs at the Brookings Institution. He served as senior director for Asia on the National Security Council from 1998 to 2000.

(China Daily 02/09/2012 page9)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564904.htm

Rich Chinese spent $7.2 billion abroad on luxury goods during the weeklong Spring Festival holiday, becoming the most powerful purchasing group in the process. Contrast this with migrant workers struggling to travel home for that all-important annual family reunion and then return to cities, with many even riding pillion on motorcycles to save money.

Over the last few years, it has become a trend among the rich to travel abroad during the Lunar New Year, which is not surprising given the rising affluence in China.

In high-income Western countries, conspicuous consumption reflecting financial success starts with a nice home and furnishings and then moves on to a desirable automobile. The third consumable is a "status vacation". If one cannot get a "winter tan" on a sun-baked beach in a tropical country, there is always a ski resort as an exhilarating alternative. A cruise vacation is another dream many Westerners aspire to realize.

But given the economic crisis gripping the developed world, many Westerners are tightening their belts. In contrast, an increasing number of Chinese are adopting this foreign travel habit as a welcome escape from the pressures of traveling in China during Spring Festival. And quite a large number of those taking foreign trips really loosen their purse strings.

Many Chinese attribute the frenzy to buy luxury goods abroad to the high tax in the domestic market. Irrespective of what the reason is, there is a side-effect to it: Though China with its per capita income of $4,500 is still a middle-income developing country, Chinese people's spending spree abroad could distort the image of the country's wealth in the eyes of foreigners.

While Westerners are astonished by rich Chinese consumers' appetite for luxury goods, people in rural China on average earn less than 7,000 yuan ($1,100) a year. Besides, more than 120 million Chinese people still live in poverty, making only about 6 yuan a day.

Just a few days ago, media reports said Pan Qihou, a farmer in his 60s in Xianfeng county of Hubei province, committed suicide after being ill for three year because he wanted to save money for his two grandchildren's tuition. Such tragedies are reminders of the widening wealth gap in China, and show the mental poverty of Chinese nouveaux riches who splurge on luxury goods abroad.

Of course, China is not the only country where the wealth gap is widening. Many Western countries face a difficult 2012, and economic inequality and austerity measures threaten to make life more difficult for low-income people.

Everyone has to be in the same boat. Excesses are no longer politically acceptable, including 1 million bonuses for British bankers, which they were forced to give up this month. US President Barack Obama has made economic inequality in the country his campaign platform for the presidential election. He has described battling income equality and maintaining the American dream as "the defining issue of our time".

In South Korea, President Lee Myung-bak is being criticized for his grandchildren's expensive outfits. The white winter jacket Lee's granddaughter wore is thought to be a Moncler, which could cost as much as $1,700.

Even though economic inequality exists everywhere, it's not wise for Chinese society to be blind to the mad pursuit of luxury goods, for it will help consumerism boom and lead to over-consumption, which has dragged Western countries into a debt crisis.

Urban residents in China have now outnumbered their rural counterparts, but the average annual urban-rural personal income gap is as big as 17,000 yuan. Looking ahead, the pace of shift from a rural to urban China should be slowed down and the inequality between rural and urban incomes reduced. In a difficult year for the global economy, if China really wants to boost consumption, it should take measures to improve incomes of lower earners and invest more in rural areas to narrow the income gap and bridge the urban-rural divide.

The author is director of China programs at CAPA International education, an UK-US based organization that cooperates with Capital Normal University and Shanghai International Studies University.

(China Daily 02/09/2012 page9)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564950.htm Forty-five-year-old street cleaner Xu Fuying in Wuhan, Hubei province, wised up to more than 10 people who falsely claimed to have lost the wallet she had found while sweeping the street before returning it to the real owner. Given the pretension and greed that people have fallen prey to, it is important to inculcate righteousness and morality among them in order to build a truly harmonious society, says an article in Guangming Daily. Excerpts:

As members of society, we expect people to be honest and compassionate. But the real world today is different. So all of us have to make efforts to spread honesty and compassion, and to stay away from and condemn wrongdoings and vulgarity.

The simple-hearted street cleaner is symbol of thousands of years of Chinese history and traditional values, for she took the trouble of finding the real owner of the wallet when she could have easily kept it for herself.

And it's a shame that so many people jumped forward from among a crowd to claim something that was not theirs. The sick behavior of these "impostors" is a sign of demoralization and should be condemned.

(China Daily 02/09/2012 page9)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564942.htm A video clip showing a Chinese couple allowing their 4-year-old son to run naked during a snowstorm with the temperature dipping to -13 C in New York, where they were enjoying a holiday, has sparked an online controversy, says an article on people.com.cn. Excerpts:

The boy's father, surnamed He, calls himself "Eagle Dad". He says he follows the parenting style of eagles, which are known to push their chicks off cliffs so that they learn to fly by desperately flapping their wings.

Despite the controversy, the approach of the "Eagle Dad" is understandable to some extent. The 4-year-old boy, Duoduo, was born premature and suffered a series of medical complications before a set of tough physical training and mental education programs designed by his father helped him in his physical and mental development.

But the debate should not stop at the tough approach of some parents. Instead, we should focus on the best ways to bring up children in these fast changing times.

Different families use different ways to bring up children, but all of them should abide by the Law on the Protection of Minors. Parents should pay full attention to minors' physical and mental conditions, and ensure that the habits their offspring pick up help them think and act positively.

As long as parents fulfill these preconditions, they can employ different methods to bring up children. Every child has distinctive characters. Some children grow up to be successful and compassionate adults under the guidance of "eagle dads" or "tiger moms". Others are equally successful and compassionate growing up under more considerate elders.

Moreover, parents should not only aim to get their children admitted to famous universities and make them financially successful. They should also try to build their children's character and conscience.

(China Daily 02/09/2012 page9)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564946.htm Comment on "WTO ruling on China not justifiable" (China Daily, Feb 6)

It's unfair that Western countries are pressuring China to export more rare earth without easing their own export quotas. It's a pity that even today the international community is controlled by a handful of countries and regions control.

The World Trade Organization is not as fair as people thought it to be, which is a shame. It's a widely known fact in the international market that the United States and the European Union have the strictest export restrictions.

The US has not only imposed strict, wide-ranging restrictions on China, but also is pressuring its allies to follow suit through the Wassenaar Arrangement, according to which all signatories have to restrict their exports of certain technologies.

China should fight back to protect its interests.

Cheer, on China Daily website

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 02/09/2012 page9)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564938.htm Comment on "New rule on HIV disclosure sparks debate" (China Daily, Feb 7)

I think regulation-makers are doing the right thing. Whether or not a person tells others of his/her disease or sufferings is a matter of privacy. But other people have the right to know the truth if a person means to harm them and even put their lives in danger by not revealing the truth.

It is understandable that HIV-positive people find it difficult to reveal their condition. But then such people should make sure their acts do not put their partners and others at risk.

A reader, on China Daily website

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 02/09/2012 page9)

]]> 2012-02-09 08:11:03 http://www.chinadaily.com.cn/opinion/2012-02/09/content_14564980.htm

(China Daily 02/09/2012 page8)

]]> 2012-02-09 08:07:59 http://bbs.chinadaily.com.cn/thread-731008-1-1.html

]]> 2012-02-08 20:06:43 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14561575.htm The Occupy Wall Street movement that has spread to several hundred cities is probably more than a footnote to US politics in 2011. The movement's slogan, "We are the 99 percent," has made most Americans rethink the country's developing direction. The US President also noted in his recent State of the Union address that an unfair economic system is endangering the country's middle class and American values.

Obama's speech showed the severe social divide and political polarization facing the United States.

Although the majority of the US middle class have not participated in the Occupy Wall Street movement, they identify with the progressive demands of the "occupants," and are disappointed and angry about the increasingly unfair economic system and its root causes.

Originally, the US society valuing "hard working" and "fair competition" was not sensitive to the gap between the wealthy and poor. But now, due to the income gap accumulated in past years and the unfairness in the individual development opportunity, American people's attitude toward the gap has changed.

After making researches, a scholar from the Brookings Institution Isabel Sawhill believes that, in the bad situation caused by the financial crisis, Americans do not feel any more that the United States is a country full of opportunities. In the past, most Americans believed that they had many opportunities to succeed and their children could live a better life by hard working too. But now, it seems many of them believe that they cannot narrow the gap between the wealthy and poor according to current "rules of game."

Many scholars on politics, including Jacob Hacker and Paul Pearson, pointed out that this phenomenon of unfairness also reflects the strengthening political influence from U.S. "social elites". Many super wealthy men work in the financial realm and have paid large amounts of political donations. It is a reflection of this kind of political influence that the U.S. Congress maintains low tax rates on managers of hedge funds.

Under the current system, financial benefits come to hands of a few "elites," but the risk is taken by the unprotected middle class. Meanwhile, the current system also fosters the political polarization, social distrust emotion and hostilities among different stratums and may distort the operation mode of the U.S. democratic political system and strengthen money's influence on politics and power.

Like what Barack Obama said, the US society is facing two options for its future: accepting the polarization or recovering the economic equity. However, the primary task faced by him is not to fight against the system and rich people but win the presidential election.

]]> 2012-02-08 14:36:49 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14561571.htm China accumulated certain personal and social wealth by hard work in the past 30 years, but it has turned into a big question that how China should avoid intensively and rapidly spending it on luxurious products and make it a long-term capital for the sustainable development.

According to latest data issued by the World Luxury Association on Feb. 1, Chinese's expenditure on overseas luxurious products in the Spring Festival of 2012 had increased by about 30 percent compared to that in the Spring Festival of 2011. Of the total expenditure on luxurious products of Europe, Macao and Hong Kong, Chinese's expenditure accounted for about two thirds. In North America, Chinese's expenditure accounted for one third.

China's economy has been growing rapidly for 30 years, leading to a great rise in the consumption power of the country and the people of the country. The Chinese consumers, who go to London, Pairs and New York by air in groups, crowd tightly in front of luxury shops and spend money like water, have performed a reality show of “Chinese richness” for the world.

People know etiquette after they have enough to eat. Such consuming behaviors by some Chinese people are unavoidable in the social development course. And we should be proud of the fact that Chinese people have become richer.

However, what worries me is the abnormal social state of mind behind the crazy money spending on luxurious products. China's group of people that is pursuing luxurious products is too large and too young. It is said that, China's luxurious product consumers are 10 years younger than those of Europe and the United States. High-end luxurious products which are originally designed for a few richest people and their sons and daughters have turned into “lovers” of common urban youths. The money worship declaration of “I would rather cry in a BMW car,” the many cases of individuals flaunting their name-brand bags and sports cars and the phenomenon of earning several thousands of yuan a month but buying a bag of tens of thousands of yuan are all reflections of the fact that many Chinese are obsessed by the material desire.

China indeed accumulated certain personal and social wealth by hard working in the past 30 years, but it has turned into a big question that how China should avoid intensively and rapidly spending it on luxurious products and make it a long-term capital for the sustainable development. Practically speaking, China should carry out social educations on blind consumption rather than encourage luxurious consumption and allow it ruin the youths. After all, most Chinese people are still not rich and are just working for a fairly comfortable life. Strictly speaking, the obsession to luxurious products is the reflection of the fact that Chinese people have lost their life goals and beliefs. If we do not cure it in time, the period when we spend money blindly and are conquered by overseas luxurious products will be longer than we expect.

]]> 2012-02-08 14:36:39 http://bbs.chinadaily.com.cn/thread-730752-1-1.html 2012-02-08 09:53:38 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14557991.htm 2012-02-08 09:53:38 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14556668.htm

Canadian Prime Minister Stephen Harper arrived in Beijing late on Tuesday for a five-day visit to China. He has come at an important moment when both sides feel an increasing need to bring bilateral ties to a new level.

This is Harper's first visit to China after his re-election in May 2011 and his second as prime minister. The fact that he is accompanied by five ministers, six members of parliament and 40 business executives indicates his government is looking to garner lucrative business deals with China.

As long as both sides can base their cooperation on equality and reciprocity, there is a huge potential for China and Canada to tap the potential in such fields as trade, natural resources, science and technology, finance, culture and tourism.

Since Harper's first China visit in December 2009, bilateral cooperation and exchanges have witnessed vigorous development. Bilateral trade surged 60 percent in the last two years, and hit a record high of almost $50 billion in 2011. Official statistics from Canada show China is Canada's second largest trading partner after the United States, and China invested a total of C$14.1 billion ($14.2 billion) in Canada in 2010, up from C$12.9 billion in 2009 and C$5.7 billion in 2008.

With China's approval of Canada as a "preferred tourism destination" in 2010, the number of Chinese tourists to Canada has increased by over 20 percent, helping Canada's tourism industry shake off the adverse effects of the global financial crisis.

As a sign of enhanced political mutual trust, high-level exchange visits have also become more frequent, highlighted by President Hu Jintao's state visit to Canada in June 2010, when leaders of the two nations decided to further promote the China-Canada strategic partnership in an all-round way.

Differences aside, there is no conflict of fundamental interests between China and Canada. The growth in Sino-Canadian ties has brought concrete benefits to both nations and at the same time promoted peace, stability and prosperity in the Asia-Pacific region and the whole world.

For the smooth and healthy development of bilateral ties, both sides should treat each other with respect, accommodate each other's core interests and major concerns, and appropriately handle sensitive issues. It is hoped the two countries can make their relationship a model for relations between countries of different social systems and modes of development.

Aside from bilateral ties, pressing international issues are also expected to figure in Harper's talks with Chinese leaders. A mutual exchange of views and mutual understanding of each other's stance in this regard will help cement their cooperation on the world stage.

(China Daily 02/08/2012 page8)

]]> 2012-02-08 07:59:16 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14556663.htm

After the US fast-food giant McDonald's said it was discontinuing the use of the "pink slime", made from beef trimmings treated with ammonium hydroxide, used in its burgers, its China division said the ingredients used for its burgers in China are different from those in the United States. It said its burgers here are made of 100 percent beef and its production process meets China's national standards.

But this has failed to convince many Chinese consumers, who say that since food safety standards and regulations in the US are generally higher and more developed than those in China, how can McDonald's use higher standard ingredients in China than it does in the US.

If McDonald's really wants to reassure Chinese consumers, it should provide evidence that the burgers here are not made from pink slime and have the magnanimity to teach consumers how to identify burgers made with such gunk. And the company's whole production chain should be open to inspection by officials, the public and media.

China's food safety law already grants the General Administration of Quality Supervision, Inspection and Quarantine the right to test samples and inspect the production and process sites of food makers.

Transparency is the best way to overcome the suspicions of consumers. If the company chooses to stick its head in the sand and ignore the public's concerns, consumers will finally vote with their feet.

Since McDonald's China has not yet shown any sincerity or readiness to open its production and processing to inspection, the related authorities should act quickly according to the law to meet the public's right to know in food safety incidents.

Periodic inspections by food safety supervisors should be instituted in the future for all food producers, regardless of their backgrounds. The relevant authorities must be more responsive and crack down hard on any malpractices in food production in order to deter others from compromising food safety.

China's food safety standards are lower than developed countries, but that does not mean food producers can put profit before the safety of consumers.

(China Daily 02/08/2012 page8)

]]> 2012-02-08 07:59:16 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14556650.htm

US President Barack Obama said on Sunday that a military attack against Iran was fraught with risks and that he preferred a diplomatic resolution to dispel the war clouds gathering over the Gulf. It seems that the threat of a US-led attack on Iran has eased, at least for now.

The Western media say Teheran's nuclear program is to blame for the standoff between the West and Iran. After the International Atomic Energy Agency (IAEA) issued a report suspecting Iran of developing nuclear weapons, the US and European Union member countries imposed more economic sanctions on Iran, and asked other countries not to buy oil from Iran to "force Teheran to halt its nuclear plan". Iran has responded by conducting military drills and threatening to blockade the Gulf of Hormuz.

But neither Iran nor the US has uttered the word "war".

This shows the main cause of the tension is not Iran's nuclear program but the domestic politics of the US, especially the 2012 elections, in which not only the president but also members of the House of Representatives and one-third of the Senators will be elected.

Democrats and Republicans take on each other to garner the support of voters, of which the Jewish lobby is an important part. Traditionally, American Jews have supported the Democrats. But this time, they seem unhappy with Obama, whose new approach to deal with Iran and solve the Palestinian problem has been opposed by the Benjamin Netanyahu government in Israel.

This presents Republicans the chance of winning over the Jewish lobby to their side, and the scramble to do so is on. Republican presidential candidate Mitt Romney made that obvious when he said: "If we re-elect Barack Obama, Iran will have a nuclear weapon; if you elect me as president, Iran will not have a nuclear weapon."

The toughest American sanction against Iran, however, is not what the Obama administration truly wanted, for it was worried that a tough embargo on Iranian oil would cause oil prices to skyrocket and eventually curb US economic recovery. Instead the toughest sanction against Iran was more of a compromise by the Obama administration under pressure from the Capitol Hill. But the deal has given the Obama administration much flexibility in implementing the sanction.

The sanction against Iran is part of the US National Defense Authorization Act for Fiscal Year 2012, signed on Dec 31, 2011. In other words, the Pentagon would have found itself devoid of funds had Obama not signed the act. Besides, the schedule of the sanctions tightly followed the progress of the election campaign.

The sanction has also been necessitated by the US' political needs in the Middle East. An open secret in international politics is that the IAEA relied heavily on US and Israeli intelligence agencies for information on Iran's nuclear programs, which means its report was greatly influenced.

The report came at a time when the US needed it most. The Netanyahu administration in Israel was moving away from the US and Palestine had applied for formal UN membership despite Washington's opposition. In short, the report came when the US was being troubled by conflicting sides in the Middle East.

The US' problems were solved, to a large extent, as soon as the IAEA report was issued drawing the world's attention to Iran. This is not to say that the US intervened in the publication of the report.

Iran's internal politics has also contributed to the conflict. Iran has become more conservative and tough after the 2009 election; its internal power struggle, especially between the Consultative Assembly and the government, has intensified, too. To maintain unity in the country, the Consultative Assembly often takes tougher measures than the government. In fact, it was the Consultative Assembly members that first threatened to blockade the Gulf of Hormuz and cut oil supply to the EU.

Also, Iranians generally believe that the US is not willing to fight a hard war in the Middle East after nine years' painful experience in Iraq. No wonder, Iranian politicians tend to act tough in a bid to be seen as defenders of national interests - as opposed to becoming cowards in case of a compromise.

Therefore, even though the US-Iranian dispute seems to have intensified, it is unlikely that either side would trigger a war. After all, they have too many interests to consider. Of course, irrational acts cannot be ruled out in US election year. But the US is likely to intensify its threats, instead of starting a real war, because no side wants it or can afford it.

The author is director of the Center of Middle East Studies, affiliated to the China Institute of International Studies.

(China Daily 02/08/2012 page9)

]]> 2012-02-08 07:59:16 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14556645.htm

The abductions of Chinese workers in Sudan and Egypt have heightened concern over the safety of Chinese nationals living or traveling abroad. But we should treat the rising trend of attacks against Chinese citizens rationally to ensure that overseas projects do not suffer unnecessarily, and the government should strengthen its early warning system against such attacks and take more preventive measures to reduce the risks.

The accelerating pace of globalization, and advancing means of communications and transportation have increased, in geometric proportions, the number of Chinese people going abroad in recent years.

In the 30 years before the reform and opening-up, only about 300,000 Chinese nationals traveled abroad, that is, an average of about 10,000 person-times a year, whereas the figure in 2011 alone was about 70 million. With the number of Chinese people traveling overseas increasing 7,000 times, the odds of a Chinese encountering trouble, too, has risen manyfold.

Also, in recent years an increasing number of Chinese companies have been engaged in international cooperation projects. Compared with their Western counterparts, Chinese companies offer lower production and labor costs to other developing countries. Therefore, most of the projects Chinese companies have contracted are in other developing countries, and a majority of them are in infrastructure construction and need manpower to execute.

The reason why some Chinese workers face a high risk of being attacked is that some of these developing countries are politically unstable with relatively sharp social contradictions, which could trigger conflicts and violence.

Furthermore, China's increasing economic strength and growing influence in international affairs in recent years have made some anti-government forces in volatile regions believe that they can exert greater pressure on their governments to achieve their political ends by abducting Chinese nationals. And criminal gangs that abduct people for ransom think that Chinese nationals are more "lucrative targets".

So, in more ways than one, Chinese workers abroad often become the passive victims of political turbulence or abductions.

Some people may ask why should China continue to invest in or provide aid to countries where the security environment is relatively poor. But no place can be absolutely safe in today's world. Even the world's most developed countries, including those in North America and Europe, are not free from trouble. Occasionally, somebody goes on a shooting spree, killing innocent people even in the most advanced countries.

Today, it is almost impossible for a country to maintain economic growth without participating in global economic cooperation, and giving due importance to its domestic and foreign resources and markets.

True, there are more risks abroad. But no opportunity comes without inherent risks. Development potentials are much higher in developing countries because they lag behind their developed counterparts in almost every field. Besides, they also offer mutually beneficial cooperation.

There is no doubt, though, that Chinese companies, citizens and government should make greater efforts to reduce the risks. It is very important that companies conduct a comprehensive risk assessment of their destination country, including its political situation, economic structure, business practices, and the social and international environment before investing or signing a contract. This will give them ample time to develop contingency mechanisms.

A Chinese national, on his part, should be aware of the warnings issued by the consular department of the Ministry of Foreign Affairs and Chinese embassies and consulates before venturing abroad, and prepare psychologically and materially to cope with potential risks.

The government has taken prompt action to protect the lives of Chinese nationals abroad and set up an inter-ministerial emergency response mechanism for people living or traveling overseas. Also, the Ministry of Foreign Affairs has established an overseas citizens' protection center to respond quickly during emergencies and effectively mobilize domestic and international resources to help overseas Chinese.

In March 2011, the government evacuated nearly 36,000 Chinese nationals from Libya in 10 days, reflecting the efficacy of the mechanism.

Chinese embassies and consulates, too, have set up emergency response mechanisms to rescue Chinese nationals from trouble, maintain close contact with host countries' diplomats, military, police, Customs, media, transportation departments, and to keep in touch with companies overseas, and compatriots and students traveling or living abroad.

In case of an emergency, the mechanism can swing into action immediately to provide aid to and rescue Chinese nationals.

But with the protection and rescue of overseas compatriots getting more complex, the government should increase investment to hire more personnel and set up more facilities to protect Chinese nationals abroad.

The author is the president of China Institute of International Studies.

(China Daily 02/08/2012 page9)

]]> 2012-02-08 07:59:16 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14556640.htm

After over 30 years of development and social transformation, China now has a completely new social pattern. Three sub-systems, namely the State system with its officials and government agencies, the market system with its entrepreneurs and enterprises, and the civilian system with its citizens and various non-governmental organizations, have formed, interacting and confronting each other.

The government has said they will construct an "innovative country", but an innovative country needs not only innovations in government and enterprise systems, but also in society.

Social innovations are creative ways to meet social needs, and they are indispensable in maintaining social vitality, encouraging civilians' enthusiasm to participate in social affairs, and helping form a sense of self-governance.

The past several years have already seen social innovation play an increasingly important role in the development of China, and there are some noticeable trends for the future.

Social innovation will become an essential cooperative platform for the State, enterprises and civilian groups. The State should provide general institutional support, enterprises should provide material support, while civilian groups should provide human resources, which is the leading part. However, all three are indispensable; only with the cooperation of all can social innovation take place.

NGOs and social enterprises will play an increasingly essential role in this process. Unlike ordinary enterprises, social enterprises provide public services for the common good, and only seek revenue to cover their running costs. As key providers of services to society, they have done much to promote social welfare and propel public participation.

NGOs are taking over many social responsibilities from the government and they have a growing influence in areas other than their traditional charity and community self-regulation. Today they are involved in environmental protection, education, employment, consumption, housing, health, energy conservation, population flows, wildlife protection, even to climate change and urban management.

Various emerging types of organizations will play a special role in social innovation. In some Western countries, traditional forms of organizations are in decline, while new ones, such as Internet groups and temporary movements are on the rise. In China the situation is different as traditional organizations show no hint of decline, but new organizations are definitely gaining influence.

It is the people and the social mechanism that decide the effects of social innovations, but modern technology is also having a growing influence. Modern communication platforms, such as micro blogs, social networks and instant messaging services, are becoming indispensable to social innovations.

Networks, cyber or real, help increase the effects of all groundbreaking actions by multiplying the scale of their effectiveness through chain reactions. In fact, the State and the market systems already have their own networks to boost innovation, we hope society can develop its own soon.

Social innovation is becoming a global phenomenon that concerns all countries. From Europe to the United States this new process has recruited politicians, entrepreneurs, civil talent and intellectuals. Social innovation, already an essential social movement in developed countries, is now gaining more attention in developing countries.

The author is deputy director of the Communist Party of China's Central Compilation and Translation Bureau.

(China Daily 02/08/2012 page8)

]]> 2012-02-08 07:59:16 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14556635.htm

Xi's US visit will play a positive role in advancing Sino-US relations and a healthy and mutually beneficial partnership

Vice-President Xi Jinping will pay an official visit to the United States next week. The upcoming visit is of great significance for the two sides as they strive to maintain the good momentum of their relations in 2012.

President Hu Jintao and US President Barack Obama paid reciprocal visits, and agreed on two joint statements in November 2009 and January 2011, both of which not only reflected the development of bilateral relations, but also put forward ideas and measures for furthering relations. These two joint statements serve as important supplements to the three joint communiqus issued in the 1970s and 80s.

In April 2009, the two sides agreed to build a positive, friendly and cooperative Sino-US relationship, and in January 2011 the two presidents reaffirmed their commitment to building a cooperative partnership based on mutual respect and mutual benefit, which was a new positive orientation for bilateral relations.

Vice-President Xi's visit will further promote the implementation of the consensus reached by the two heads of state, so that bilateral relations can progress steadily.

In August 2011, US Vice-President Joe Biden paid a successful visit to China, where he noted how much China has changed in recent years.

After his return to the United States, Biden published an article on the The New York Times website titled "China's Rise Isn't Our Demise", speaking glowingly of China, he rejected the view that China's growth is a threat, and said he remains convinced that both countries have a stake in each other's success. "A successful China can make our country more prosperous, not less," he wrote. His optimistic view and positive understanding of China reflects the truth of the bilateral relationship.

But over the years, although Beijing has been reiterating its commitment to peaceful development, some in the US still worry about China's intentions, and some deliberately promote a "China threat".

Xi's visit to the US is another opportunity for close contact between leaders from both sides. He will meet with US politicians, academics, business people and ordinary US citizens, and will visit Muscatine in Iowa where he led a delegation sent to study advanced hog-raising techniques in 1985.

Media coverage of Xi's visit will bring him to the attention of millions of US households, which will help the US public understand China.

The two countries are important trade partners and enjoy a high degree of interdependence, but there are also some inevitable trade frictions and disputes. Unfortunately, China is often the scapegoat for the US' economic downturn. This is especially evident in the electioneering by the Republican presidential candidates, and the Obama administration will likely follow suit, as it will not want to be put on the defensive over the economy by its opponents.

It is important that China and the US ignore the sloganeering and distractions of the campaigning and strive to maintain the stability of relations. Xi's visit is a good opportunity for leaders to conduct in-depth conversations, discuss the current world economic situation, and communicate on further promoting a comprehensive and mutually beneficial economic partnership.

Xi's visit should serve as a new driving force for bilateral economic and trade cooperation, and encourage both sides to properly handle economic and trade problems.

Currently, Sino-US relations contain a wide range of regional and global issues. But the priority of these issues is not the same for Beijing and Washington. High-level visits are a very important means for both sides to communicate and exchange views on these issues.

Issues such as the stability of the Korean Peninsula, Iran's nuclear program, and turbulence in Syria are likely to be put on the table. However, in view of the current world economic uncertainties and economic situation in the US, the visit will mainly focus on the economic front.

When Hu visited the US in 2011, the two heads of state established a number of new mechanisms for communication, such as the consultation mechanisms for regional issues and the China-US Governors Forum, all of which have been in successful practice.

Xi's visit will consolidate the existing mechanisms, and further expand bilateral cultural cooperation.

We hope Vice-President Xi's visit will be a complete success.

The author is a researcher at the Institute of American Studies, the Chinese Academy of Social Sciences.

(China Daily 02/08/2012 page8)

]]> 2012-02-08 07:59:16 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14557460.htm The soccer riot in Port Said, Egypt, in which 74 people were killed, has startled the world. But conditions that led to the riot were present both inside and outside the stadium, given the rising public anger over lawlessness and collapsing security a year after Egypt's uprising, says an article in Qilu Evening News. Excerpts:

Soccer has always been associated with passion and joy. Supporters of losing teams have always felt sad and those of winners elated. More often than not supporters of losing home teams have started soccer riots, but the Port Said riot was incited by home supporters whose team had actually won.

Authoritative media reports show that the security for the match in Port Said was far from adequate. Many of the deaths and injuries were caused by sharp-edged tools, showing the slack pre-match security inspection and the lack of a contingency emergency plan needed to quell a riot.

Soccer riots have taken place both in developed and developing countries and most of them have occurred because of lack of proper security arrangements rather than the outcome of the matches.

The fact that supporters of the winning home team started the riot in Port Said, which then spread to other Egyptian cities, shows chaos can bring huge destruction to a country.

Egypt's deadly soccer riot should be a lesson for other countries and regions.

(China Daily 02/08/2012 page9)

]]> 2012-02-08 07:59:16 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14556681.htm For five decades, the title of "five-virtue family" was what people used to strive to achieve, but Beijing recently replaced it with "harmonious family". The new set of standards, especially the one that says "a harmonious family should own more than 300 books, travel frequently and go on family outings", has sparked a controversy. The criteria that make a "harmonious family" in these changing times no longer seem to be that "harmonious", says an article in Huaxi Metropolis Daily. Excerpts:

Many netizens disagree with the new set of standards propounded by the authorities. Some netizens think the criteria that require family to go shopping and travel frequently as well as have access to the Internet deprive low-income families of the chance to be being chosen as a "harmonious family". Some netizens have even asked whether relevant authorities consulted the public before approving of the new set of standards.

The Beijing Women's Federation has said that according to online discussions, the criteria for a harmonious family cannot be fixed and further amendments are needed to decide on the standards. But whether or not later criteria would be convincing, credible and acceptable for all remains a question.

In fact, there are no exercisable standards to define a harmonious family. To some extent, it is inevitable that such criteria will be questioned. Altogether, 200 "harmonious families" will be selected from among the roughly 5.25 million families in Beijing every two years, which would indicate that the rest are unharmonious.

The criteria for a "five-virtue family" played an important role in guiding healthy social customs and values. With the fast paced economic development, values and family composition have become more diversified; they cannot be evaluated by any one set of standards.

Perhaps it would be better if relevant departments promoted concepts such as life-long education and volunteer service to help build harmonious families.

(China Daily 02/08/2012 page9)

]]> 2012-02-08 07:59:16 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14556673.htm Comment on "Taylor Swift aims at Jake Gyllenhaal on new album?" (China Daily, Jan 18)

I was a bit disappointed after reading the article. The headline suggests the article is mostly about Taylor Swift's new album.

But that is not the case.

The article says the singer's new album will be about her "heartbreak".

This is not really new information, because we all know that Swift bases most of her songs on her past relationships.

I would like some more information on her new album instead of tabloid gossip about her past boyfriends.

For instance, it would be useful to inform readers about the possible release date of her album and how many songs it will have.

Articles, I feel, should give more information on what their headlines convey.

It would be better to talk about the present or the future instead of discussing events that took place over a year or two ago.

Megan Petersen, via e-mail

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 02/08/2012 page9)

]]> 2012-02-08 07:59:16 http://www.chinadaily.com.cn/opinion/2012-02/08/content_14557303.htm

(China Daily 02/08/2012 page8)

]]> 2012-02-08 07:56:35 http://bbs.chinadaily.com.cn/thread-730800-1-1.html

]]> 2012-02-07 20:15:33 http://bbs.chinadaily.com.cn/thread-730583-1-1.html 2012-02-07 10:14:55 http://bbs.chinadaily.com.cn/thread-730635-1-1.html 2012-02-07 10:14:55 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14548735.htm

The Chinese government is clear-cut in its attitude towards the European Union's carbon emission charges on flights into and out of airports in EU member countries.

As the Civil Aviation Administration of China announced on Monday, the government does not allow China's domestic airlines to pay such charges as it regards the EU decision as unreasonable and arbitrary.

In the first place, this scheme, which came into effect on Jan 1, does not conform to international legal principle that each state has complete and exclusive sovereignty over the airspace above its territory. The scheme constitutes an infringement on the sovereignty of other countries as it charges for carbon emissions emitted not just within the airspace of EU countries but during the entire flight.

It also runs contrary to the principle of common but differentiated responsibilities enshrined by the United Nations Framework Convention on Climate Change. In line with this principle, developing countries should be exempt from such charges.

Such charges can easily be considered as an arbitrary scheme EU has developed to rip off non-EU countries as there has been no mention of how the money the EU charges will be used and how it will benefit the campaign against climate change.

What is realistic and pressing is the rapid rise in costs for all airlines worldwide.

It is estimated that the cost of Chinese airlines' flights to EU countries would have to increase by about 300 yuan ($48) per ticket to cover new charge. The China Air Transport Association has estimated that the EU scheme might cost Chinese airlines about 800 million yuan in the first year and about 17.6 billion yuan from 2012 to 2020. While the levy will probably earn the EU an income of about 900 million euros ($1,177 million) this year, rising to 2.8 billion euros by 2020.

We can see no sincerity and earnestness in this scheme to help fight against climate change. Rather we see the hypocrisy and condescending manner of the EU lording it over the rest of the world.

As such, there is concern that this may be just the beginning of the EU using its leading position in low-carbon technology to levy carbon taxes on other high-carbon industries. If this is the case then the fight against global warming is merely an excuse for the EU to rip off developing countries, where energy intensity is high thanks to their lack of low-carbon technology.

In this way the underdevelopment and disadvantage of developing countries, which have been caused, to certain extent, by some European countries' colonization, is feeding the greediness of their former colonizers.

We must fight against it.

(China Daily 02/07/2012 page8)

]]> 2012-02-07 08:23:46 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14548730.htm

Chinese-speaking sales assistants and point of sales terminals for China Unionpay are already standard requirements for the top department stores in London and New York, popular destinations for Chinese tourists. The question is should we be proud of or worried about it.

The latest data released by the World Luxury Association on Feb 1 indicates that Chinese consumers' expenditure on luxury goods overseas during the Spring Festival holiday increased nearly 33 percent year-on-year.

Mainland consumers now account for almost two-thirds of luxury consumers in Europe, Hong Kong, Macao and Taiwan, and one-third of luxury consumers in North America.

At this rate, China will replace Japan as the world's largest consumer of luxury goods well before the predicted 2015.

But luxury goods are not actually necessary ingredients for a good quality life for Chinese people, especially considering the fact there are more than 100 million Chinese citizens still living under the poverty line.

Japanese consumers spent 20 years rationalizing their mania for luxury items. Chinese consumers may also need such a puberty period to liberate their nouveau riche mentality and reflect on their pursuit of the most expensive rather than the most suitable.

What makes it even more worrying is that an increasing number of young consumers are eager to participate in the rush for luxury goods, despite their limited incomes. Reportedly, the average Chinese consumer of luxury goods is more than 10 years younger that the average consumer in the West.

It is important that the national wealth, accumulated through people's hard work over the past 30 years, is not squandered on luxury items.

The Chinese authorities and the media should pay special attention to improving the consumption awareness of Chinese buyers, so that spending power of domestic consumers is not wasted.

Chinese consumers should learn to spend their money wisely, so as not to set a bad example for others at home and promote erroneous judgments about China abroad.

(China Daily 02/07/2012 page8)

]]> 2012-02-07 08:23:46 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14548725.htm

With the Safer Internet Day being observed on Feb 7, it's time for more countries to join hands and make concerted efforts to enhance Internet safety. Unfortunately, China is still often accused of cyber espionage. Such baseless accusations will only create a lose-lose situation and increase suspicion and misunderstanding among countries and regions, while the real troublemakers will go scot-free.

Such perverse accusations ignore two basic facts.

First, China's network to some extent is "non-defensive", because it lags far behind its Western counterparts in mastering the advanced technology of telecommunication, Internet application and services, and in securing crucial infrastructure and important information networks. Online security experts have pointed out many of China's weak points in cyber security, especially its heavy dependence on Western core technology and low self-defense capacity.

The vulnerability of China's cyberspace has hardly improved in the past decade. In other words, despite growing network coverage, and promotion of new technologies and applications, the development of China's online security mechanism has been slower than the emerging loopholes and invention of new cyber attack methods. Reports of online security companies and relevant government departments show how serious the situation is.

Their dependence on Western, especially American, technologies and services taught Chinese people an unforgettable lesson in 2008. That year, US information technology (IT) giant Microsoft launched a mechanism to blacken the screens of computers using counterfeit Windows. It's right to attack piracy, but the incident also exposed China's online vulnerability to high-tech intrusion from overseas.

The incident also showed that American IT giants were not only controlling the operation systems in China, but also had a grip on chips, routers, servers, control systems and databases. The situation left China no option but to strengthen its safeguard mechanism, and boost its research in and control of critical technologies.

The other basic fact that baseless accusations ignore is that, like in other fields, China is a responsible country in cyberspace as well.

China has the highest number of netizens in the world. It provides all kinds of Internet services, including cloud computing, Wireless Application Protocol and Internet of things. As a beneficiary of telecommunication development, China launches systematic crackdowns on hacking and other network crimes to maintain order in the virtual world, which directly influences its economic development and security.

Since the 1990s, China has issued more than 30 laws and regulations on information security. It has amended the Criminal Law several times in regard to new online crimes. In August last year, the Supreme People's Court and the Supreme People's Procuratorate issued a new judicial interpretation of hacker attacks and distribution of malicious programs on the Internet, extending imprisonment and/or penalty to production, sale and distribution of hacking tools, and stealing of information online.

In a case in which hackers had been hired to enter the computer systems of the Shanghai and Guangdong maritime bureaus in a bid to embezzle 2.38 million yuan ($377,468), the hackers were sentenced five years and their "employers" to 16 years in prison according to the new interpretation.

China has established judicial coordination mechanisms with more than 30 countries, including the United Kingdom and the United States, and plays a proactive part in regional cooperation to strengthen network security.

In fact, compared with traditional security issues, countries have a greater chance of trusting each other on cyberspace issues, because they are transnational in nature and cannot be handled by any one country. The Internet connects the entire world, so a loophole, no matter where it occurs, can destroy the openness and security of global networking. Treating each other as cyber enemies will only increase distrust among countries to the advantage of hackers.

Therefore, the only way to deal with online security threats is to strengthen cooperation and mutual trust. But even the great efforts made by the international community to issue common regulations for cyberspace have yielded only a few fruits.

It's good to see China and the US holding more dialogues on the issue. But regretfully, the US still uses every opportunity to portray China as an "online threat". American politicians have repeatedly stressed that countries cannot strengthen their control over cyberspace for security reasons. The American politicians actually want to end the online security cooperation with China, putting ideology before the national interests of both countries.

No country will tolerate online threat and hacker activities. So to deal with hackers and online threats, countries need to use reason, and reason says that all countries have to cooperate to make the Internet safer.

The author is deputy director of the Institute of Information and Social Development Studies, China Institutes of Contemporary International Relations.

(China Daily 02/07/2012 page9)

]]> 2012-02-07 08:23:46 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14548720.htm

Former US president Richard Nixon's week-long visit to China in 1972 concluded with publication of the Shanghai Communiqu, a unique joint political document that established the principles for normalizing US-China relations.

Looking back over four decades, it is clear that Nixon's visit, and his discussions with Chairman Mao and Premier Zhou Enlai, fundamentally changed the political dynamic of the Cold War - to the benefit of the security of both countries. The Soviet Union was put on the defensive, and the US and China began to dismantle their decades-long confrontation. The visit represented one of the most dramatic and transforming diplomatic initiatives of the 20th century.

Full normalization of Sino-American relations was completed by former US president Jimmy Carter and Deng Xiaoping in late 1978. This development made possible a dramatic advancement in our bilateral relationship - especially in the economic and cultural realms.

Where are US-China relations today? Some have characterized them as "strategically ambiguous". We are neither allies nor adversaries. We have major areas of cooperation - especially in economic relations - but also significant areas of competition and disagreement. We share common interest in national security and a stable international environment; yet we have limited areas of cooperation and a significant measure of distrust.

Our relations today are in a contradictory state of opportunity and some antagonism. If our areas of disagreement are not carefully managed, we could again become adversaries.

Today, we can see that in the two decades since the end of the Cold War the world has entered a new era. The great power conflicts and wars that dominated the 20th century have given way to a time of international economic integration -involving both mutual benefit and competition.

Today, our security concerns are about regional interstate rivalries (the Democratic People's Republic of Korea and the Republic of Korea; India-Pakistan; Israel-Iran), and weak states that permit the growth of terrorist groups. We work to prevent the proliferation of nuclear weapons and to deal with the corrupting influence of narcotics cartels; and pirates capturing ocean shipping for ransom. And worldwide, ethnic and religious conflicts have replaced ideological rivalries as forces for political instability.

As well, our security is affected by issues that are not military in character: the integrity of our electronic systems - the brains and nerves of modern societies; dependable access to energy and other resources necessary for economic development; and the humanitarian impact of global climate change, pandemic diseases, pollution of the environment, and natural disasters. We are still learning how to deal with these challenges, especially where international cooperation is required.

And then there is a new force creating political change around the world: mass publics mobilized by the information revolution and social networking communications. In president Nixon's time the relatively new technology of television could be used to change public opinion "from the top down".Today, the Internet and social networking media give people the ability to exert political influence "from the bottom up".

History shows that serious economic problems, and even many security concerns, can be managed through determined diplomacy. Territorial disputes, however, are the kinds of issues that can lead to military confrontation - if not war.

One of the outcomes of the Nixon-Mao talks of the early 1970s - as noted earlier - was an agreement to defer resolution of Taiwan's status in order to cooperate on the strategic security challenge from the Soviet Union. Failure to manage Taiwan's future relationship with the Chinese mainland peacefully is the most likely source of a breakdown in the US-China relationship.

Having said that, over the past four decades there has been a remarkably positive evolution in cross-Straits relations, which have now evolved into increasingly constructive economic and social dealings between the island and the mainland. There is open political communication between leaders in Taipei and Beijing, and a growing sense of common interest.

What can be done to maximize the benefits of normal Sino-American relations - much less minimize prospects for a return to confrontation?

First is the necessity to vigorously confront the primary source of economic tension - the shared concern with "jobs, jobs, jobs". In the Cold War era, the shared strategic concern with the Soviet threat helped pull the two countries together. Today, the common concern with jobs tends to pull the countries apart, although the reality is that globalization has created enormous numbers of jobs in both countries.

The specific issues currently on the bilateral economic agenda - as noted earlier - affect jobs in both countries. There are a number of well-institutionalized bilateral and international fora and dispute-management procedures for dealing with these issues - most notably the annual US-China Strategic and Economic Dialogue.

Both the US and China need an open international trading environment. And over time China will slowly make the transition from a development strategy of export-led growth to an economy with heightened domestic household consumption.

For its part, America has to invest more at home, do so intelligently, consume less, and generate the political will to manage, on a bipartisan basis, our fiscal challenges.

The second element of managing the US-China relationship should be the construction of a positive agenda of economic and security cooperation: energy security; access to raw materials; countering the proliferation of weapons of mass destruction and terrorism; sea lane security; the impact of climate change and global health threats among other things.

To conclude, Nixon called his visit to China in 1972 "the week that changed the world". Four decades later, it seems this was not an exaggeration. Or to go back even further in history, Napoleon was even more far-sighted in saying 200 years ago that China would "shake the world" when aroused from her "sleep". China today is indeed "shaking the world".

Only as leaders in both Beijing and Washington work to develop the positive factors in the relationship - while managing the areas of conflict - can they avoid the great costs that would come with a return to confrontation. This is the great contemporary challenge of managing US-China relations.

The author is president of United States Institute of Peace. He was assistant secretary of state for East Asian and Pacific affairs from 1989 to 1992. The article is an excerpt from his speech delivered to the Shanghai Institutes for International Studies on Feb 6

(China Daily 02/07/2012 page9)

]]> 2012-02-07 08:23:46 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14548715.htm

Editor's notes: In mid-January, the All-China Federation of Industry and Commerce published a report on the development of the country's private sector during the past year and the difficulties and challenges it faces. Excerpts from the report follow:

China's private sector has shown strong vigor during the past year, contributing considerably to the country's goal of maintaining steady and relatively fast-paced economic development amid the complicated internal and external economic conditions.

The sector has seen tangible growth. Statistics show that by the end of the third quarter of 2011, the number of registered private enterprises in the country was more than 9 million, a year-on-year increase of 14.9 percent. Their registered funds were almost 25 trillion yuan ($3.96 trillion), an increase of 38.6 percent.

Private sector investment, too, has increased. By the end of October 2011, domestic-funded private enterprises had invested 14.2 trillion yuan in urban and township fixed assets, a year-on-year increase of 46.5 percent. That accounted for 58.9 percent of the country's total investment and was 7.8 percentage points higher than the figure at the end of 2010. Private enterprises' exports have also increased in proportion to the country's total; with their volume from January to November 2011 increasing 33.3 percent year-on-year to more than 570 billion yuan, one-third of the country's total export volume.

The uninterrupted fast growth in private enterprises' exports has played a crucial role in checking a rapid decline in the growth of China's overall exports.

Apart from its relatively fast development, the private sector has also expedited measures to make structural adjustments in compliance with China's ongoing efforts to promote economic restructuring and transform its economic growth model.

According to official figures, the number of private enterprises engaged in the tertiary industry and the value of their registered funds have grown faster than in other sectors over the past three years. This is part of their accelerated shift from high-energy-consuming, high-polluting and low-efficient industries to high-tech industries with stronger core competitiveness that conform to the country's energy conservation and environmental protection requirements.

The booming private sector has contributed much in creating jobs and increasing urban and rural residents' incomes.

But since the world economy is undergoing complicated and profound changes and facing growing downturn pressures, China's private sector has also encountered some difficulties and challenges.

Private enterprises, especially small ones, face major difficulties because of the drastic increase in their production and operating costs in recent years. The increasing costs of production, ranging from higher energy and resource prices to the rising cost of labor and higher rents, have directly squeezed their margin of profit and chances of survival. Their plight has been worsened by unendurably high taxes and other assorted charges.

Though the government is paying greater attention to easing taxes and reducing other charges, as indicated by the adoption of a series of policies and measures in the past year, the tax burden for domestic private enterprises is yet to be mitigated.

Financing difficulties also remain a problem for domestic private enterprises, especially the small ones. According to the China Banking Regulatory Commission, bank loans have mainly flown into large and medium-sized enterprises, leaving smaller ones underfunded. Worse, unlike their larger counterparts, small enterprises usually cannot avail themselves of the preferential benchmark interest rates policy and thus have to pay much higher floating rates, further increasing their operating costs.

To boost the domestic private sector's development, the government has to first adopt an all-inclusive preferential taxation policy, targeted at domestic small enterprises. Also, it should take measures to ensure that small businesses have equal access to normal financing channels to guarantee their survival.

Besides, the government has to continue encouraging domestic commercial banks to actively develop various kinds of financial products, suitable for small businesses, and expand the scope of mortgage products. It should also take practical and forcible measures to develop township and village banks, as well as community banks to create conditions for grassroots financial bodies to serve grassroots enterprises.

Direct non-governmental capital should be encouraged to flow into the real economy and lower the market admission threshold for the entry of private enterprises into monopolistic fields or those with strategic importance.

Moreover, a favorable environment should also be created to facilitate the fledgling "going global" strategy adopted by some private enterprises. A legal procedure aimed at promoting domestic enterprises' overseas investment should be launched as soon as possible to provide them with legal guarantees to push forward such a campaign. But for that to happen, a pro-overseas investment financial system and a special risk investment fund have to be set up.

(China Daily 02/07/2012 page8)

]]> 2012-02-07 08:23:46 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14548710.htm

With the elimination of the political obstacles to their normal development, Sino-Canadian ties are enjoying a warm spring

Despite the cold weather, Canadian Prime Minister Stephen Harper's visit to China can be seen as a "warm spring trip". Since Harper's first visit to China in 2009, Sino-Canadian relations have registered substantial progress.

On the basis of the China-Canada Joint Statement, bilateral mutual trust has gradually been restored and economic, trade and investment ties have grown dramatically. There are also active cultural and academic exchanges.

President Hu Jintao's visit to Canada in 2010, the meeting of the two leaders on the sidelines of the Hawaii Asia-Pacific Economic Cooperation summit last year, and Harper's visit to China suggested that the Sino-Canadian strategic partnership has entered a new period of comprehensive improvement.

The warming Sino-Canadian relations have benefited from the Harper government's abandoning of its prejudice against China, and its return to the policy of friendship toward China.

Canada was one of the first Western powers to establish diplomatic relations with China. In 1970, then prime minister Pierre Trudeau withstood pressure from the United States and opened the door to relations with China.

Harper has eliminated political obstacles to the normal development of bilateral relations and showed a cooperative attitude in the field of justice and law enforcement, paving the way for the warming-up of Sino-Canadian relations. After the 2011 election, the Harper government consolidated its power, and it has become more confident in dealing with domestic and foreign affairs, as well as more rational and pragmatic in handling relations with China.

Warming relations between Beijing and Ottawa are necessary for the two countries to deepen mutually beneficial economic and trade cooperation during the financial crisis and beyond. Ottawa sees China as a new engine to boost its economic growth and has set up additional trade offices in China, speeded up the building of a trade corridor under the "Pacific Gateway" and actively attracted Chinese investment. In the context of faltering economic recovery in the US and Europe, China has actively expanded its market in Canada to stabilize exports.

According to Chinese customs statistics, the bilateral trade volume has increased by 60 percent over the past two years, totaling $47.45 billion in 2011. China is Canada's second largest trading partner, second largest source of imports and third largest export market.

The Sino-Canadian trade structure is highly complementary, which indicates that the two countries have great potential for cooperation. In addition to traditional trade, bilateral cooperation in areas ranging from energy, tourism, finance, education and culture are also is in full swing.

The enhancement of Sino-Canadian relations is an inevitable result of the international power shift. The relative decline of Western powers and collective rising of emerging market countries has made it necessary for Western countries to deepen their cooperation with developing countries. The eastward shift of the US' strategic center of gravity is bound up with the expansion of exports to the Asia-Pacific region.

As both the US and Europe are struggling with their own economic woes they are unable to provide Canada with robust economic growth and more employment opportunities. Enlisting help from emerging markets such as China is undoubtedly a wise move for Canada.

In recent years, Canada has shifted its global trade focus to the Asia-Pacific region. The economic development of China, India, Brazil and other countries in the region has become a strategic opportunity for Canada's sustained growth.

The strengthening of Sino-Canadian relations is in line with the domestic requirements of both countries and the shifting of international power. However, in the context of the US' "return" to the Asia-Pacific region and increasingly fierce Sino-US competition, warming China-Canada relations will inevitably be frowned upon by some political forces in the US.

In fact, the US, which has a major influence on Canada's politics, economy, and diplomatic and security relations, need not be nervous about Canada's economic and diplomatic approach to China. Canada does not want to harm the US' strategic interests and if warming Sino-Canadian relations can quell the US' impulse to contain China, it would be a blessing for peoples in China, the US and Canada.

As long as the two sides can settle their differences with mutual respect and wisdom, Sino-Canadian relations can become a model of win-win relations between countries with different social systems, different levels of development, and different development models.

The author is a scholar with the Institute of American Studies, China Institutes of Contemporary International Relations.

(China Daily 02/07/2012 page8)

]]> 2012-02-07 08:23:46 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14548824.htm A 15-year-old schoolgirl in Guangzhou, Guangdong province, was forced to live with her grandmother after her parents divorced. On Jan 28, she allegedly strangled her grandmother for refusing to give her pocket money and then torched the house to cover the crime. All social sectors need to take measures to ensure the security of families in which grandparents take care of children because of the complications they, especially the left-behind children, go through, says an article in New Express Daily. Excerpts:

Grandparents can indeed take care of children, but not all of them can do so alone. Because of their advancing age, grandparents themselves need special attention and thus are not capable of providing emotional support to their grandchildren.

Grandparents can offer good moral lessons, but their advice may not always be helpful for minors in these changing times. Once children feel that their grandparents' teachings are not of much help, they become rebellious. The tragedy in Guangzhou is an extreme example of such a case and should be a lesson for such families.

Though three decades of reform and opening-up have drastically improved the economy and quality of citizens' life, they have failed to teach many people how to bring up a child.

The employment rate of women in China reached 75 percent in 2010, the highest in the BRIC group. But that also means Chinese women face more pressure from family and work both.

The best scenario would be for women to look after their children as long as possible to relieve them from mental stress and save senior citizens from the tough task of taking care of their grandchildren.

(China Daily 02/07/2012 page9)

]]> 2012-02-07 08:23:46 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14548764.htm A college student-turned village chief in Shaanxi province was recently re-elected as a village official despite the objection of insiders. Her success is believed to be related to the millions of yuan her family contributed to her campaign. This may be an isolated case, but the authorities need to supervise campaign contribution to ensure that elections at all levels are fair, says an article in Beijing News. Excerpts:

Donations to charity, commercial investment and campaign contribution are different things. So if a family contributes to charity, the money should not influence the outcome of an election. But if it spends money to get somebody elected or re-elected, then it should be stopped.

Detailed regulations on campaign contribution in the election of village officials are urgently needed because money should not and can not be used to interfere in the matter. A village official should be elected for his personal qualities, not on the power of money. A village official should make a clear distinction between public affairs and private and commercial business, and sincerely and honestly handle public affairs. He/she should also use his/her network in a village, where kinship serves as a bond for interpersonal communication, for common good.

A good understanding of local relationship network and its use for the benefit of all can save a village official a lot of troubles in many areas, including mediation to settle villagers' disputes.

(China Daily 02/07/2012 page9)

]]> 2012-02-07 08:23:46 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14548760.htm

Comment on "Boy's escalator death declared accident" (China Daily, Feb 1)

The incident, which the authorities declared an accident, could have been prevented. Escalators or objects moving in opposite directions in a confined space can be extremely dangerous, for they can trap a person's head or limbs, or accessories like scarves and jackets or loose shoestrings.

Small children should not be blamed for accidents, for they do not know how to read the danger signs or understand the safety aspects of a public facility like an escalator. Accidents occur because of design "defects" of escalators - they are level with and part of the floors they start from or end at, causing dangerous confined spaces and could prove deadly for people, especially children.

The authorities must review and tighten management regulations for shopping malls to have escalator/floor space interface installed with barriers sufficient enough to warn and block people from getting too close. And there should be regulations to place escalators at a safe distance from the floor level they connect.

I hope the authorities make it mandatory for all existing escalator installations to erect barriers to prevent such tragedies. For a long-term solution to the problem, they must ensure that escalators are installed on extended part of the floors.

A reader, on China Daily website

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 02/07/2012 page9)

]]> 2012-02-07 08:23:46 http://www.chinadaily.com.cn/opinion/2012-02/07/content_14549158.htm

(China Daily 02/07/2012 page8)

]]> 2012-02-07 08:22:04 http://bbs.chinadaily.com.cn/thread-730601-1-1.html

]]> 2012-02-06 18:32:38 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14546360.htm

In a demonstration of its growing military power, China is increasingly willing to deploy its armed forces to protect Chinese nationals abroad, but analysts say it still lacks the capacity to mount a complex hostage rescue.

A crisis in Sudan where 29 Chinese workers are being held captive has renewed pressure on Beijing to provide security for more than 800,000 citizens employed overseas.

Expectations that China could intervene in a distant crisis were raised last year when the People's Liberation Army won domestic acclaim for its role in the rescue of almost 36,000 workers from Libya in the midst of that country's civil war.

After more than two decades of double-digit increases in defense spending, this was widely seen as evidence of the PLA's growing capacity to conduct complex, maritime operations far from home.

Beijing's move in December to deploy armed border police on joint patrols of the Mekong River following the murder of 13 Chinese nationals in an attack on cargo shipping was also seen as part of this trend.

However, the Chinese military would be unwilling to attempt the kind of daring rescue that US Navy Seals mounted last month in freeing an American aid worker and a Danish colleague from Somali gunmen, according to experts on the Chinese military.

"China does not have the intelligence network, it does not have the political will and it does not have the military capability to conduct operations of that kind of audacity," says Gary Li, a London-based intelligence and military analyst with Exclusive Analysis, a business intelligence agency.

Beijing's growing military reach has also been on display since PLA navy warships in 2008 began escorting Chinese and foreign cargo ships in and around the Gulf of Aden as part of an ongoing international anti-piracy campaign.

This mission has also seen Chinese naval vessels come to the assistance of about 50 cargo ships that have been captured or freed from pirates.

And, on occasions, senior Chinese military officers have called for stronger measures in dealing with Somali pirates despite the fact that Beijing has been careful to ensure that its warships avoid armed clashes.

The chief of the PLA's general staff, General Chen Bingde, said on a visit to Washington last year that international forces should also target Somali pirates on land to hit at the organizers behind attacks on civilian shipping.

"It is all part of a creeping shift in China's willingness to deploy security forces overseas," says Christian Le Miere, a maritime security researcher at the International Institute for Strategic Studies in London.

"We will see more of this in the future."

China this week sent a team of civilian government officials to Sudan to negotiate the release of the hostages.

Rebels in the Sudanese border state of South Kordofan captured the construction workers last Saturday, the third abduction of Chinese nationals in the areas since 2004.

They are apparently being held as bargaining chips in a dispute between Sudan and rebels allied with the newly independent and oil rich South Sudan.

With so many workers and professionals employed offshore, analysts say Beijing will almost certainly need to plan for future emergencies.

"We will see more incidences of kidnapping or other dangerous situations for Chinese in the nearer future," says Sven Grimm, director of the Centre for Chinese Studies at South Africa's Stellenbosch University and an expert on China's investment in Africa.

"In very crude terms, more people simply increase the likeliness of something to happen to them. And, secondly, a number of countries in which Chinese businesses operate are unstable."

The Sudan kidnapping has led to calls in China for better protection for vulnerable citizens offshore. Threats to workers overseas trigger thousands of posts on blogs and social media sites urging the authorities to launch a rapid response.

Chinese media too calls on the government to do more to protect nationals overseas.

"No other powers have the same number of nationals living in underdeveloped and turbulent regions as China," the strongly nationalistic, state-controlled Global Times newspaper said in a September 31 commentary. "Ensuring their safety is a major challenge."

Even if China develops the military means to use force against pirates or kidnappers, most analysts believe it would require a fundamental shift in a long standing, cautious approach to the security elements of its foreign policy to clear the way for the use of force.

China has so far avoided establishing foreign military bases and alliances that would allow it to mount distant operations and shows no inclination to do so.

"It is highly unlikely that China would take the approach of using its special forces to conduct rescue missions on foreign territory," says Shen Dingli, a professor at Shanghai's Fudan University and an expert on Chinese security policy.

Shen adds that in all its deployments offshore, China has been careful to follow international law and consult with other nations.

Still, the presence of Chinese military was symbolically important, analysts say.

"It sent a strong signal that China is prepared to keep its citizens safe," says Gabe Collins, an Ann Arbor, Michigan-based specialist on maritime affairs for the China SignPost research group.

]]> 2012-02-06 16:26:15 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14545254.htm

A newspaper affiliated with China's state-run Xinhua News Agency on Thursday called on the government and society to dispel rumors following a falsified report about nuclear leaks.

The Xinhua Daily Telegraph called for more transparency and openness in political affairs, asking authorities to publish facts in a timely manner when the public raises doubts in order to kill rumors before they can spread.

The commentary came after the Sankei Shimbun, a Japanese newspaper, reported during the weeklong national Spring Festival holiday that leakage risks supposedly exist in a nuclear test reactor in suburban Beijing.

Another report, this time in domestic media, during the same period alleged that people in Beijing are required to show identification and register with authorities when purchasing kitchen knives.

The two reports were quickly responded to by the authorities. Wan Gang, head of the China Institute of Atomic Energy, refuted the rumor about the Beijing reactor, saying that the report was "purely fictional" and that the reactor is currently in a shutdown state.

Beijing's police department also denied any new regulation regarding the sale of kitchen knives. Beijing residents are only required to show identification when buying "controlled" knives, which include daggers, knives with three edges and switchblade knives.

The commentary urged authorities to inform the public about rumors by using multiple approaches to target different audiences, as well as encouraged governments at all levels to set an exemplary role by abiding by the law.

The commentary urged the media to take responsibility by strengthening their ability to recognize falsified information and maintaining a "rational attitude" to prevent themselves from becoming rumor disseminators.

Individuals can also play a role in dispelling rumors, the commentary added, urging people to improve their ability to think independently and not spread specious information indiscreetly.

]]> 2012-02-06 14:32:49 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14545250.htm Russia and China on Saturday vetoed a UN draft resolution on Syria. It was the second time since October 2011 that the two permanent members of the UN Security Council (UNSC) had used a double veto to block a UNSC draft resolution on the Middle Eastern nation.

Analysts here said the failure of the draft resolution to clear the UNSC reveals a serious division among the 15 members of the council, which has the primary responsibility for the maintenance of peace and security in the world at large.

The diplomatic battle surrounding the situation in Syria would persist, they said.

WORLD-WATCHED VOTE

The vote drew worldwide attention as Russia and major Western nations, led by the United States, Britain and France, differed sharply over the situation in Syria.

Nearly two hours of closed-door consultations at the UNSC delayed the council vote, originally scheduled for 9 a.m. EST (1400 GMT), until around 11:50 a.m. (1650 GMT) due to deep divisions among council members.

The draft urged efforts to "facilitate a Syrian-led political transition to a democratic, plural political system ... including through commencing a serious political dialogue between the Syrian government and the whole spectrum of the Syrian opposition."

It also said the Security Council "fully supports" the Jan. 22 Arab League plan demanding Syrian President Bashar al-Assad step down -- one of the major stumbling blocks in pre-vote consultations.

Despite a series of minor revisions to the draft made by its co-sponsors, including some Arab states and the United States, Britain and France, the bulk of the position remained intact.

Observers said that if the draft were adopted, the likely scenario would be a "regime change" in Syria.

DEEP DIVISIONS

Russia had expressed its serious concern over the draft text. During the council consultations, Russia warned against meddling in the internal affairs of Syria,and worked hard to avoid a replay of the Libya model, in which the NATO military helped topple Libyan strongman Muammar Qaddafi.

Hours before the council entered into the scheduled meeting Saturday morning, with Western powers pushing for a vote on the draft, Russia circulated an amended draft resolution which, as Russian Foreign Minister Sergei Lavrov said, "aims to fix two basic problems."

There were "(first,) the imposition of conditions on dialogue, and second, measures must be taken to influence not only the government but also armed groups," Lavrov said at a panel discussion at the Munich Security Conference, adding that these two issues are "of crucial importance" from Russia's point of view.

U.S. Ambassador Susan Rice, however, described those amendments as "unacceptable" as she headed into Saturday's session. And the co-sponsors of the resolution did not take into account these concerns.

After the vote, Russia's UN Ambassador Vitaly Churkin justified the veto by saying the proposed resolution "did not adequately reflect the real state of affairs in Syria and has sent an unbalanced signal to the Syrian parties."

For his part, Li Baodong, the Chinese permanent representative to the United Nations, regretted that the Russian amendments were ignored.

"Like many council members, China maintains that, under the current circumstances, to put undue emphasis on pressing the Syrian government, prejudge the result of the dialogue or impose any solution will not help resolve the Syrian issue, but instead may further complicate the situation," Li said.

MISTIMED VOTE

The timing of the vote was also a point of difference between Russia and major Western powers.

Russia and China had been closely following developments in Syria and actively engaged in consultations over the draft at the UNSC.

Russia had tried to invite representatives from both the Syrian government and the opposition to Moscow for peace talks. And according to Churkin, Russian President Dmitry Medvedev had instructed Lavrov and Mikhail Fradkov, director of the service for external intelligence of Russia, to travel to Syria on Tuesday to meet with Syrian President Bashar al-Assad.

Russia's positive moves deserve support from the international community. France and other Western powers, however, ignored the legitimate concerns of Russia and other countries and called instead for an immediate vote Saturday on the draft, using the pretext of what they called the urgency of the situation in Syria.

"To push through a vote when parties are still seriously divided over the issue will not help maintain the unity and authority of the Security Council, or help resolve the issue," Li said.

"China supports the revision proposals raised by Russia, and has taken note that Russian Foreign Minister (Sergei Lavrov) will visit Syria next week," he said, after vetoing the UN draft together with his Russian counterpart Churkin.

"The request for continued consultation on the draft by some council members is reasonable," Li said.

]]> 2012-02-06 14:32:49 http://bbs.chinadaily.com.cn/thread-730219-1-1.html 2012-02-06 10:51:08 http://bbs.chinadaily.com.cn/thread-730254-1-1.html 2012-02-06 09:10:46 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14541026.htm

When China joined hands with Russia on Saturday to veto an Arab-European draft UN resolution backing an Arab League plan to promote a regime change in Syria, its stance was consistent with its approach to international issues.

The draft resolution that sought to realize a regime change in Syria did not adequately reflect the state of affairs in this Middle East country.

In putting the resolution to the vote, Western powers hoped to further exert pressure on Syrian President Bashar al-Assad to step down, thus paving the way for the removal of a regime that is an obstacle to their policies in the Middle East.

By only exerting pressure on the Syrian government and explicitly trying to coerce its leader al-Assad to step down, the resolution sends the message to armed groups and opponents of his regime that they have the support of the international community. This will undoubtedly make the Syrian situation even more complicated and make it impossible for all parties to reach a conciliatory agreement that is in the best interests of the country and its people.

We've seen what happened in Libya. With the armed intervention by some major Western powers, the Libyan regime was overthrown. But instead of the democracy and freedom they were promised, Libyan people cannot even live in peace as the country is in the danger of falling into a sectarian civil war.

It is not a question of whether Syrian leader Bashar al-Assad should step down or not. It is whether the ever-worsening crisis in the country will be brought to an end in such a way that the country will not be plunged into a sectarian civil war and its people plunged into even greater misery.

China maintains that any attempt by the international community to help Syria solve its crisis must respect the sovereignty, independence and territorial integrity of the country.

A messy civil war in Syria will not be conducive to peace in the Middle East.

Russia's stance that conditions should not be imposed on dialogue, and that any efforts should influence not just the government but also the armed groups is reasonable. Russian Foreign Minister Sergey Lavrov and Mikhail Fradkov, the director of Russia's Foreign Intelligence Service, will travel to Syria on Feb 7 to meet with Syrian President Bashar al-Assad.

The draft resolution was presented too hastily and the international community should give the Russian diplomatic endeavor time to soften the positions of all the parties in Syria so that an agreement can be reached that is for the good of the country.

The Chinese government believes that, in line with the UN Charter, political consultations are the best way to help a nation solve any political crisis.

(China Daily 02/06/2012 page8)

]]> 2012-02-06 07:54:01 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14541016.htm

China's cooperation with EU will help promote eurozone and solve the debt crisis in a sustainable and long-term way

Premier Wen Jiabao made clear the Chinese government's stance on the European debt crisis during German Chancellor Angela Merkel's fifth official visit to China since taking office.

Wen expressed the urgency and importance of solving Europe's debt crisis and said China is considering "involving itself more deeply in" efforts to address the debt issue.

Europe's debt crisis has been fermenting for more than two years. However, due to its complicated causes, it is very difficult to find a solution that can address both short-term and long-term interests and satisfy all the parties concerned.

At present, Germany's proposal for dealing with the crisis has the upper hand, as it has gradually gained the support of France, another important country in the eurozone. The two have decided to work together to promote the financial integration of the eurozone.

At the summit of the European Union leaders held on Jan 30, all the EU member states, except for the United Kingdom and the Czech Republic, signed a new fiscal treaty designed to ensure tighter deficit and debt discipline, and a consensus was reached on launching the European Stability Mechanism in July.

This is the result of concerted collaboration between Germany and France, suggesting that the EU has the political will to overcome the current crisis, and is willing to make every effort to sustain the eurozone.

With its current heightened debt burden, a policy of austerity is necessary for the EU, but this is far from enough to form a fundamental and effective solution to the debt crisis in Europe. The EU must find ways to promote economic growth.

On January 13, Standard & Poor's downgraded the debt ratings of nine eurozone countries, partly because the eurozone was focusing on budget austerity while ignoring measures to promote economic growth.

The growth prospects for the European economy this year are grim. The Organization for Economic Cooperation and Development has forecasted that economic growth in the 17 countries using the euro will slow to 0.2 percent in 2012, and the 27 members of the EU will register a growth of only 0.6 percent.

The European Commission has put forward the Europe 2020 Strategy in a bid to get out of the crisis and prepare a sustainable and inclusive EU economy for the next decade. Some politicians in Europe have also advocated continuing to explore the potential of the single market, increasing investment in energy and infrastructure, and expanding international trade, and so forth.

There are a number of ways China can help EU countries escape the quagmire of the debt crisis.

At a joint press conference with visiting Chancellor Merkel, Premier Wen said Europeans' own efforts should play a vital and fundamental role in resolving the crisis, and the EU, as a whole, should continually push forward systematic, structural and fundamental fiscal and financial reforms in addition to adopting emergency bailout measures, and feed the international community with more uniform and defined ideas to solve the problem

On the other hand, he said Chinese authorities are studying and assessing more proactive efforts to resolve Europe's debt issue by financing the IMF and through the European Financial Stability Fund, the European Stability Mechanism and other channels.

Without doubt, China's offer of bailout funds and the purchase of European bonds are what European countries want most. But this is not the only way that China can lend a hand. For many European countries, including Germany, the expansion of international trade is essential to maintain economic growth.

In 2010, the Sino-German bilateral trade volume reached $142.4 billion, comprising nearly 30 percent of China's total trade volume with the EU. It is worth noting that German exports to China increased by 34.9 percent. The strong growth momentum of its exports of automobiles, machinery and chemical products to China strongly fueled Germany's economic growth. Last year, the bilateral trade volume reached a record $169.1 billion.

At a Sino-German business meeting with the participation of a number of German and Chinese entrepreneurs in Guangzhou, Premier Wen and Chancellor Merkel discussed initiatives to further promote bilateral economic and trade relations.

Merkel said that Germany welcomes Chinese companies increasing their investment in the country. But in return China wants Germany to open up its technology market, and Germany and other European countries to improve their investment environment, and refrain from politicizing economic behavior.

Overall, Sino-EU relations have witnessed healthy development in recent years. As two of the world's most important economies, strengthening economic cooperation will also have a significant impact on world economic growth.

The author is the director of the Institute of European Studies at the China Institutes of Contemporary International Relations.

(China Daily 02/06/2012 page8)

]]> 2012-02-06 07:54:01 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14541011.htm

On Jan 30, the World Trade Organization Appellate Body released its reports on China's appeal against a WTO Panel report on its exports of raw materials on July 5, 2011.

The Appellate Body's reports supported some of China's appeals by declaring moot and of no legal effect several Panel claims concerning export quota administration and allocation, export licensing requirements, and a minimum export price requirement. But it upheld the key part of the previous ruling, namely that China's restrictions on exports of key raw materials broke WTO trade rules.

The ruling, if it comes into effect, will put great pressure on China's production and export management of such raw materials as bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, yellow phosphorous and zinc.

However, the ruling is not justified. Since the WTO claims it respects the principle of environmental protection, it should allow its members to take measures for that purpose. China, as the world's factory for high-energy consuming and high-polluting products, has long served overseas consumers at the cost of its environment, and it has the right to change this situation.

Of all relevant measures, export restrictions and tariffs are the most direct and efficient means of cutting the production of these materials, as they prevent many uncertainties and unwanted side effects. Of course, taxing the production of raw materials would have the same effect, but this would require complicated supervision and would thus be extremely costly.

The WTO ruling pressures China to abandon the former, leaving it hardly any choice but to adopt the latter.

But even if China accepts the ruling, the "critical shortage" of raw materials claimed by the suing countries, including the United States, will not be relieved.

Besides, we also need to consider the possibility of Western countries once again changing their attitude towards the issue, as their policies have too many times vacillated under the influence of interest groups. Since they sued China for restricting raw material exports during the bull market, they can naturally ask China to restrict such exports when the market turns bear.

On Oct 24 2006, the EU Trade Committee issued a report in which they blamed China for restricting raw material exports; one or two years later they decided to change their stance and threatened to take anti-dumping measures against China's exports of raw materials.

Today they have gone back to pressuring China to export more, but as the bull market has already shown some indications of ending, especially since May 2011, no one can be sure they will not change their attitude yet again. So China should be prepared.

Almost immediately after the WTO ruling came out, Karel de Gucht, the EU trade commissioner, said it would force China to drop its export restrictions on the materials named in the case as well as rare earth elements. But the suing countries should notice that their actions might invoke a chain reaction contrary to their own measures.

A widely recognized fact in the international market is that the US and Europe have the strictest export restrictions. Ever since 1949, the US has not only set up a wide-ranging, strict and stubborn restriction mechanism against China, it has also pressured its allies to follow suit. Even after the Cold War it has maintained export restrictions against China, and pushed the Wassenaar Arrangement, to which all signatories restrict exports of technology to China.

The Western countries are pressuring China on its export restrictions but show no intention of easing their own.

The author is a senior researcher at the Ministry of Commerce's Chinese Academy of International Trade and Economic Cooperation.

(China Daily 02/06/2012 page8)

]]> 2012-02-06 07:54:01 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14541006.htm

On Jan 14, Ma Ying-jeou, the incumbent leader of Taiwan, won a hard fought battle for re-election. In 2008, the charismatic Ma had helped the Kuomintang return to power in a landslide after eight years of rule by the pro-independence Democratic Progressive Party (DPP). This time around, Ma garnered 51.6 percent of the vote, while his chief rival, Tsai Ing-wen of the DPP, won 45.6 percent.

In 2008, it was easy for political analysts to explain Ma's overwhelming victory over Hsieh Chang-ting, the DPP candidate. For starters, the highest levels of the DPP had been tarnished by scandal and corruption. But there were numerous other events that had negatively affected Taiwan during the administration of Chen Shui-bian. These included a precipitous deterioration in ties with the Chinese mainland, unprecedented strains in unofficial relations with the US, and increased political polarization, ethnic division and gridlock at home. To put it succinctly, Taiwan's people were fed up with the antics of Chen Shui-bian and some other politicians. This explains why Ma won an astounding 58 percent of the vote, while Hsieh got only 42 percent.

Ma's re-election has been welcomed by most people in Taiwan, the mainland and the international community. But a small group of pro-separatist pundits have sought to take the shine off Ma's victory by peddling unfair and inaccurate interpretations of the electoral contest.

Some blamed the surprising margin of victory on the Taiwan businesspeople who took the time out of their busy schedules to return from the mainland (and abroad) to vote in the election. Rather than being praised for their civic spirit and commitment to public affairs, they have been vilified as "pro-business cheerleaders with no country of their own." The implication is clear: it was "unfair" for the hardworking and civic-minded businesspeople to participate in Taiwan's elections.

Others have proffered yet another excuse for the DPP's sound drubbing at the polls. They claimed that the United States influenced Taiwan's voters and pointed to several "cases of bias." For example, in September 2011, one unnamed US official told the Financial Times that Washington had "distinct doubts" about Tsai's ability to maintain stable relations with Beijing.

Moreover, in the run-up to the election, the US announced that it might soon allow Taiwan tourists visa-free travel to the US. And only days before the election, Douglas Paal, former director of the American Institute in Taiwan, arrived in Taipei and endorsed the 1992 Consensus, while blasting Tsai's so-called Taiwan consensus as meaning that she had no desire to reach any agreements with the Chinese mainland if elected.

Only two examples are provided here for lack of space. But clearly the inference of these and some other analyses is that the DPP is not responsible for its loss at the polls. Somehow, we are supposed to believe that powerful "outside forces" are at work. In fact, nothing could be further from the truth.

To her credit, Tsai made some efforts to appear moderate and reasonable. She even pledged to expand links with the mainland. But perhaps due to pressure from extremist elements within her party, Tsai refused to publicly renounce "independence" as an option for Taiwan. It is likely that the same considerations led her to oppose the 1992 Consensus, an arrangement that enables the two sides of the Taiwan Straits to talk with each other. Rather, Tsai offered an opaque "Taiwan consensus", a proposal she never fully explained causing confusion throughout the entire political spectrum in Taiwan. It appeared not to make sense to anyone, including members of her own party.

Ma's victory may be attributed to a number of considerations. For instance, he is honest. His administration has not been rocked by scandals, bribery or corruption. He will not tolerate such behavior. Furthermore, Ma has never embraced a separatist agenda or gone out of his way to provoke the mainland. Despite the differences that exist between the two sides of the Straits, Ma appears committed to the "peaceful development" of cross-Straits relations. For example, the two sides have signed a free trade pact, opened direct flights between major cities, and signed an agreement enabling millions of mainland tourists to visit Taiwan. There is even talk of a peace agreement. Also, Taiwan is no longer considered a "troublemaker" in the global community. And finally, Ma has sought to mend Taiwan's social fabric that was torn and frayed during Chen Shui-bian's tenure in office.

When one compares Ma's solid record of accomplishments to the ill-defined promises of Tsai (and her party's dismal track record during 2000-2008), it is clear that Taiwan's voters made the rational choice when they cast their ballots on Jan 14. But one should not jump to the hasty conclusion that it will be all smooth sailing for Ma during his second term. The economic turmoil created by the 2008 global financial crisis continues to undermine global economic stability. Indeed, the European debt crisis threatens Taiwan and the mainland both. Besides, the income gap in Taiwan - like on the mainland - continues to widen and could become a source of instability.

Ma has to take measures to close the growing gap between the rich and the poor. And although cross-Straits relations are at their best since 1949, there could be some temporary setbacks because it is only natural that the two sides may see things differently from time to time. In sum, as Ma warned on election night: "We have to be glad for just one day." This is because Ma will confront a lot of daunting challenges in the next four years.

The author is director of the Graduate Program in Global Studies in the Department of Political Science at Missouri State University. He served as an election observer in Taipei between Jan 9 and Jan 15.

(China Daily 02/06/2012 page9)

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China is now entering an urban age. According to the National Bureau of Statistics, China's urban population reached 690 million in 2011, accounting for 51.27 percent of the total population. Now, more than half of China's population lives in cities and towns. The country has reached a profound historical milestone; it has bid farewell to traditional rural society and joined the urban world.

China's urbanization is an event of global significance not only because the scale and pace of urban expansion is unprecedented in world history, but also because the process of urbanization is deeply embedded in the global economy. China's urbanization is becoming the engine of global economic growth.

Unlike the flocking of farmers into the slums of "third world cities", a process known as "pseudo-urbanization", the swelling of China's urban population is driven by the jobs created in cities in association with the "factory of the world". The pace of urbanization has been determined by the world demand for Chinese workers and the products they make.

China's urbanization is accompanied by substantial industrialization. The intertwined processes of urban growth and industrial development mean that China's urbanization is productive - it is a process of wealth creation.

But the driving force building the world factory has also led to incomplete urbanization. Rural migrants flow into the cities and become urban workers. However, they have not been truly integrated into urban society as urban dwellers or citizens. Rural migrants are uprooted from rural society and become "sojourners" in the cities. The sense of placeless of the migrant population is a profound challenge for Chinese society, which has previously been rooted to the soil.

In the building of cities, local governments get incentives from land revenue, which has fostered the pace of urbanization. Building larger cities is becoming a slogan for economic growth. Large stretches of rural land are being converted into residential areas, attracting speculative investors. Some are becoming ghost towns.

In contrast to unoccupied formal housing, informal housing in "urban villages" is a major source of shelter for millions of rural migrants. Despite under-serviced and low-quality housing, migrants are not necessarily unhappy about their housing conditions in the cities. Although they prefer strongly to stay in cities, their sense of attachment to them is low. The sense of alienation among second-generation migrants is especially strong. And social exclusion is creating a new dualism in cities.

Seeing "urban villages" as the "cancer of cities" and "anomalies of modern society", local governments are keen to improve the image of the cities. The demolition of "urban villages" has thus become a de facto tactic to modernize Chinese cities, without recognizing that informal housing is the only affordable option for rural migrants.

So what went wrong with Chinese urbanization? The problem is the idea of taking a city as a place for production rather than a community of people. We have seen the urbanization of land and jobs, but not the urbanization of people. Ultimately, it is the urbanization of people that should be regarded as the genuine and progressive transition toward the urban world.

Despite their dilapidated appearance, Chinese "urban villages" are not "slums of despair". Most of the people who live there have jobs and work hard to earn a living. Because of convenient locations, in "urban villages" there are usually many shops, restaurants, markets, barbers, and real estate and job agents, targeting the low-income migrant population. What are lacking perhaps are adequate toilets, kindergartens, schools, clinics and other social service facilities.

Forcing informal housing to upgrade into high-standard market housing inevitably dispels the residents to move to places further away where the rent is more affordable. The conditions in "urban villages" may not be ideal but at least they accommodate the normal family life, better than the more orderly and cleaner factory dormitories. "Urban villages" as migrant enclaves serve as a more human environment than the outsider might perceive.

To reduce the resistance toward village redevelopment, the current practice of demolishing villages is aimed at compensating more generously the original villagers, whereas the living conditions of rural migrant renters is hardly considered. To balance the cost of compensation, developers are usually allowed a much higher plot ratio, namely selling additional space in high-rises to generate profit. This approach will eventually turn low-rise village housing upward into a "vertical urban village".

While affordable housing in "urban villages" is disappearing, local governments often choose suburbs or even exurbs to build large-scale affordable housing projects. These projects create a huge financial pressure on local fiscal budget and can potentially lead to the long-term problem of "council estates" or "tower blocks" seen in Western countries. The large scale of concentrated public housing built in the 1960s in these economies has led to high concentration of social deprivation.

Nowadays, many so-called eco-cities are built in suburbs. But developing these places is hardly eco-friendly because of the need for long-distance commuting. Rather, many "urban villages", because of their convenient locations, spontaneously evolve into popular housing markets and densely populated communities. They are close to workplaces and services. Public transport is the norm rather than exception for "urban village" dwellers. So are we missing an opportunity to turn "urban villages" into genuine sustainable and eco-friendly places by demolishing them?

In short, the urban age is full of promises and challenges. For a socially and ecologically sustainable urban future, we must remember that urbanization is ultimately about people and their changing ways of life.

The author is Bartlett Professor of Planning at University College London.

(China Daily 02/06/2012 page9)

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As an old saying goes: "If you don't do financing, money won't come to you." How do you manage your money? China Daily mobile news readers share their views.

After over a decade's hard work, my husband and I have earned 2.2 million yuan ($349,500), of which 1.2 million has been used for a new house, furniture and decoration. My principle for managing the other 1 million yuan is inflation-proofing and appreciation: 100,000 yuan is for stock, 300,000 for commingled funds while the remainder is for bonds. Besides, I use credit cards as much as possible during their interest-free period. Such products reward me with 40,000 to 100,000 yuan in interest and bonuses.

FIONA, Dalian, Liaoning province

My idea for managing my finances is diversified investment: two mutual funds as long-term investment for future security; 30 percent of the money invested on high-risk paper gold and stocks; one insurance and circulating fund invested on financing products from the Bank of China.

XUEYING, Xi'an, Shaanxi province

I prefer low risk products and returns. As a wage earner, my primary objective is inflation proofing and appreciation of my property. I divide my personal assets into three categories: property, financial assets (mainly mutual funds) and current assets (saving money not immediately useful in a short-term deposit account). Meanwhile, it is also an important way to do financing by using a credit card to pay my bills during its interest-free period.

WENWU, Changchun, Jilin province

I keep accounts every day to carefully monitor whether the daily expenses of the family are within a reasonable budget. In the meantime, I adopt a prudent financing strategy by holding some stock, bonds and commingled funds as a long-term investment. I also purchase short-term financing products with the surplus of my current account. Last but not least, insurance is important so that even if we suffer from a terrible illness when we grow old, we will receive medical treatment without being a huge burden on our family.

A reader, Beijing

I think a financial strategy should change with age. Young people who just start to work should cultivate a habit of regularly depositing money every month and invest their savings in relatively high risk and high repayment products. As they grow old and their assets become substantial, they can switch to more prudent financial products.

MARLER, Jiangmen, Guangdong province

In my opinion, we should learn how to better use credit cards since it would help ease the temporary shortage of cash. One should open two credit cards with different due dates to make full use of the banks' interest-free period.

TAOYING, Beijing

As a college student, I have a relatively small property, but by carefully practicing the "5-3-2 financing theory", I have made full use of the money I get from my internship, scholarship, part-time jobs and my parents. Half of it is saved for tuition and accommodation fees, 30 percent for travel expenses and shopping and the other 30 percent used for daily life.

XIAOWEI, Beijing

(China Daily 02/06/2012 page9)

]]> 2012-02-06 07:54:01 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14541031.htm Comment on "Keeping track of precious rail tickets" (China Daily, Jan 19)

I can cite two cases that show how difficult it is to book a train ticket in China. This winter I intended to visit Harbin, Heilongjiang province, to see the ice and snow sculptures. But no train tickets for Harbin were available to suit my travel plan, and I had to call the hotel in Harbin and cancel my reservation.

Last summer, I planned to visit Urumqi, Xinjiang Uygur autonomous region. Then, too, I couldn't get a train ticket and I had to cancel my hotel booking.

So uncertain it getting train tickets, that when some of my friends called me last winter and expressing an interest in visiting China, I had to advise them not to do so, because train tickets cannot be effectively booked in advance.

But the ID requirements are not the problem they are being made out to be. Many ticket agents are simply not trained to deal with foreign passports.

Queue jumping and the general unwillingness of people to queue up at the railway stations, however, are very hard for first time visitors to China to fathom.

One of the many changes needed to improve train services in China is to plan according to what people actually do and not what they should be doing.

Robert Crawford, via e-mail

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 02/06/2012 page9)

]]> 2012-02-06 07:54:01 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14541021.htm

The cadmium polluting the Longjiang River in the Guangxi Zhuang autonomous region has highlighted the issue of who should pay for pollution cleanups and the damage they cause to the environment.

Since 2009 there have been more than 30 serious incidents of heavy metal pollution by chemical, photovoltaic, pharmaceutical and IT companies in about 10 provinces.

The affected areas, mostly in East China, are densely populated and the pollution will cause long-term harm to both the environment and public health.

It is common sense that the party responsible for the pollution, usually the companies that discharge the pollutants, rather than public money should pay the cleanup costs and any compensation.

However, at present, enterprises pay a sewage charge in China to cover any environmental damage and it is usually public finance that pays for any cleanup.

But these sewage charges are much lower than the costs of any pollution incident, and more importantly, they do not deter polluters from discharging pollutants again.

The incidents in the past prove that the authorities at various levels are easily duped by enterprises' well-planned reports on their waste discharge. In most cases, local authorities do not deal with the pollution until local media report damage to people's health and the environment.

In the 1970s, German enterprises started sending their industrial waste to be treated and recycled by companies specially licensed by the authorities to do the job. All kinds of wastewater, gas and residue are strictly classified. The discharge and treatment processes of any kind of waste are both clearly priced and monitored.

The ingrained belief that polluters should pay the bills and it is dauntingly costly to discharge pollutants not only forces the enterprises to consistently adopt new cleaner technologies, but also promotes the development of a green economy.

The environmental costs should be measured while calculating local economic growth and become an important indicator to evaluate the performance of local authorities to strengthen necessary supervision and administration.

(China Daily 02/06/2012 page8)

]]> 2012-02-06 07:54:01 http://www.chinadaily.com.cn/opinion/2012-02/06/content_14540638.htm

(China Daily 02/06/2012 page8)

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(China Daily 02/04/2012 page5)

]]> 2012-02-04 08:08:28 http://www.chinadaily.com.cn/opinion/2012-02/04/content_14536242.htm

As the chair of APEC this year, Russia vows to foster cooperation in trade liberalization, food security, logistics, energy and innovation

Russia has taken over the rotating chair of the Asia-Pacific Economic Cooperation (APEC) forum in 2012 and will host this year's APEC Leaders' Week in Vladivostok. For Russia this honor comes with a great sense of responsibility. Just as Russia is an integral part of the vast and forward-reaching Asia-Pacific region, which is crucial for the socio-economic development of Russia, especially Siberia and the Far East. Therefore, one of the country's top priorities is to promote trade and investment cooperation with Asia-Pacific countries and to actively participate in regional integration.

We have many proposals for our Asia-Pacific partners that seek to address problems in spheres of energy, transportation, research and technology, and environmental protection; to promote dialogue among civilizations and ensure military-political stability in the region; and to boost cooperation in emergency response and in the fight against international terrorism.

The APEC leaders' Honolulu declaration says: "Our region is now the vanguard for global growth." Russia, as the current APEC chair, will do its best to reinforce the region's leading position.

What does Russia intend to do as APEC chair? First of all, we plan to ensure continuity in APEC's work, while also trying to expand the forum's traditional agenda in a constructive manner.

Russia's key objective is to further liberalize trade and investment and facilitate economic integration in the Asia-Pacific region. We expect our cooperation in these fundamental APEC spheres to yield practical results. Now that Russia has joined the World Trade Organization (WTO), the country's representatives will be able to fully participate in trade liberalization discussions. A consolidated position among APEC member economies should jumpstart multilateral trade talks and make them more constructive.

Russia's energetic involvement in regional integration is a conscious choice, and indeed the right choice. Following the successful conclusion of the WTO accession process, Russia is now ready to start talks on free trade agreements with APEC economies. Of course, Russia will act jointly with Kazakhstan and Belarus, the other members of the trilateral Customs Union. Added to the potential of the Common Economic Space, this could pave the way for a fundamentally new form of APEC integration and help expand the Asia-Pacific market to the whole of the Eurasian continent.

Russia also plans to promote APEC cooperation on food security. Like all other member economies, we have a stake in ensuring that food is available, affordable, safe and of high quality. In light of the growing social commitments of governments in the post-crisis period, we must develop stable food markets and dampen price fluctuations. Furthermore, we must continue to search for ways to ensure agricultural development based on rising mutual investments, modern technologies and in compliance with quality standards.

The prospects of greater integration in APEC are closely connected to the need to improve logistics or (as it is often described within APEC) to ensure supply chains' connectivity in the region. Russia is prepared to offer access to its transport corridors, which are the shortest route between Asia and Europe. We know that they must be upgraded, which will require major investment. This is what we will be discussing with our partners, who will surely show interest in our proposals. We have developed practical ways to use modern technology to resolve transportation issues, in particular organizing cargo routes, cargo handling and vehicle tracking.

Innovation-based economic development is crucial for stable economic growth. This issue, which Russia sees as a priority, has been met with a lively response from our APEC partners. We will promote extensive interaction among universities, research centers and companies. Cooperation in education and developing human capital is vital, and the protection of intellectual property is becoming increasingly important. We also see opportunities for advancing joint initiatives in these spheres within APEC.

Russia is a leading supplier of energy to the global market, but energy will be just one of many focuses during Russia's tenure as APEC chair. It is certainly an important issue today, but we should also think about tomorrow. Therefore, we will promote further constructive discussions of the entire range of energy security issues as well as green growth.

The Asia-Pacific region is, unfortunately, prone to natural disasters and hazards. Earthquakes and tsunamis, anthropogenic catastrophes and epidemics demand that we redouble our efforts to better prepare APEC member economies for possible natural disasters and other emergencies.

During its tenure as APEC chair, Russia will also focus on cooperation in the fight against terrorism and transnational crime. We believe that no one will question the importance of this aspect of APEC's activity.

These are the main areas of Russia's activity under the motto, "Integrate to Grow, Innovate to Prosper". There is no doubt that by common efforts in 2012 we will successfully deepen Asia-Pacific integration for economic growth and prosperity in the region.

The author is president of the Russian Federation.

(China Daily 02/04/2012 page5)

]]> 2012-02-04 08:08:28 http://www.chinadaily.com.cn/opinion/2012-02/04/content_14536237.htm This year's election in Taiwan on Jan 14, in which current Kuomintang chairman, Ma Ying-jeou defeated Tsai Ing-wen, the candidate of Democratic Progressive Party, came during a critical period of political and economic changes for the Asia-Pacific region. The ongoing global financial and economic crisis has severely affected the region's major economies, as exports have declined and unemployment is rising rapidly. In addition to the economic uncertainties, Asia-Pacific's regional stability is further complicated by the forthcoming presidential elections in the United States and the Republic of Korea, the leadership transition in China, and, of course, the recent power transition in the Democratic People's Republic of Korea following the death of Kim Jong-il. Therefore, Ma's victory is not only significant for political ties across the Straits, but also for wider regional stability.

Ma will now have to deliver on his election promises, and make the cross-Straits economic and social exchanges beneficial for both Taiwan and the Chinese mainland. During Ma's first term in office, there were landmark deals, such as the opening of direct air and sea links, and the Economic Cooperation Framework Agreement, which allowed fruit and other products from the island to be exported to the mainland without tariffs. Nevertheless, in order to sustain peace and stability across the Straits, both sides must increase "people-to-people" exchanges at the grassroots level. While both sides have normalized economic relations in the past few years, it is the social ties among people that will contribute to greater cross-Straits dialogue and understanding.

In particular, educational exchanges between young people and students can play an important role in fostering intercultural dialogue, by building people-to-people contacts, enhancing mutual trust, and promoting a regional view and identity. Compared with the systematically developed educational exchange mechanism in the European Union, academic cooperation between the mainland and Taiwan has been limited by policy restraints, despite the interest shown by universities and students from both sides.

Essential policy framework, such as the mutual recognition of degrees and diplomas and joint research initiatives, is also absent. Despite the recent establishment of sister and partner universities between institutions on the mainland and the island, the flow of students is mainly a one-way traffic, dominated by the influx of students from Taiwan to the mainland. In contrast, the mobility of students between the mainland and Hong Kong and Macao special administrative regions is much higher and more evenly distributed. Also, while the majority of Hong Kong, Macao and Taiwan students are enrolling in degree programs in China, most mainland students go to Taiwan for only short exchange visits and summer schools.

As a consequence of the intensified Beijing-Taipei interaction after 2008, new opportunities for academic exchanges have arisen. For instance, the demographic reality in Taiwan means there is a serious shortage of students for higher education institutes. In August 2010, after 15 years of discussion, a landmark bill was passed in Taiwan which allowed universities to recruit around 2,000 mainland students each year. However, there are a number of restraints on the admission of students - for example, on the subjects of study and the types of institutions - which have prohibited students from enrolling in certain disciplines.

Furthermore, only students from six mainland provinces are eligible to study in Taiwan. This seriously limits the potential pool of candidates. In its first year of recruitment in 2011, while all undergraduate places are now filled, there is a serious shortage of applicants for higher degrees.

The mobility of people and such interpersonal and intercultural contacts are important factors in promoting dialogue and drawing us all closer. Lively interaction among people from different backgrounds allows us to put aside stereotypes and overcome prejudices.

While naturally politics and economics still remain the most powerful factors in cross-Straits relations, intensifying education exchanges must be seen as a wise and realistic way of overcoming misconceptions, and will be an important step towards deepening dialogue and enhancing mutual trust.

The success of the European Erasmus Program illustrates how academic exchanges and cooperation, through the mobility of the newer generations of young people and students, can lead to socialization and integration from the grassroots upwards. Therefore, if cross-Straits educational exchanges can be efficiently coordinated by the authorities on both sides they can play a forceful role in spreading goodwill and building a common identity. Let us ensure pragmatic steps are taken to facilitate and encourage people-to-people exchanges.

The author is associate dean for China programs and professor of international affairs, ESSCA School of Management, Angers, France.

(China Daily 02/04/2012 page5)

]]> 2012-02-04 08:08:28 http://www.chinadaily.com.cn/opinion/2012-02/04/content_14536247.htm

We're in an age of narcissism and commodification of everything, including intimacy.

Marriage and love now come with added cost for men in China. Some women go even further, putting a price for going on a date with a man.

A survey conducted by the committee of match-making service industries, China Association of Social Workers, affiliated to the Ministry of Civil Affairs, and baihe.com in mid-January shows that 77 percent of single women think men earning less than 4,000 yuan ($633) a month are not fit for dating.

The National Bureau of Statistics figures show that the average salary of urban residents was only 1,998 yuan a month in 2011, which means a large number of men don't qualify as a date.

But surprisingly, the survey that covered 50,384 people, also found a romantic side to young people in today's world full of material desires. Sixty-nine percent of the men and nearly 72 percent of the women polled said they would marry for love.

Love, however, can hardly pave the way to the aisle in the real world. A young man may have to struggle to find a wife if he doesn't have property. A recent poll of young people born in the 1990s shows that a man needs at least an apartment, a car or a rich family to tie the knot.

The post-1980s generation has greater expectations from life and their spouses than the previous generations. A wedding is about fulfilling a dream and showing off, even though a China Investment Research Consultant survey shows the average expenditure on a wedding was 30,000-40,000 yuan in 2009, compared with 20,000 yuan in 2005. Wedding expenses usually cover clothes, jewelry, a banquet, photographs and a honeymoon.

It's true that housing prices have come down in many cities over the past year or so thanks to government measures such as higher interest rates on mortgages, property tax, curbs on lending and restrictions on the purchase of second homes. But many young people still cannot afford to buy an apartment without down payments from their parents.

More women would like their boyfriends to have an apartment, a car and a good salary before saying "I do". And the rising number of divorce, and the fear of taking on obligations and losing one's freedom are deterring more people from getting married.

The new millionaires, who indulge in hedonism and worship Mammon, have become the new role models. Money has never been more important for people. The country's economic miracles have also created unnecessary desires.

We, however, would be surprised to know the real tastes of Greek philosopher Epicurus (341270 BC), from whom hedonism is mostly sourced. Epicurus didn't have a grand house. He ate simple food and drank water rather than wine. Such was the taste of the man who described pleasure as the purpose of life.

In the AD 120s, in the central market-place of Oinoanda, a town of 10,000 inhabitants in the southwestern corner of Asia Minor, a column 80 meters long and nearly 4 meters high was built and inscribed with Epicurean slogans for the attention of market-goers:

Luxurious foods and drinks in no way produce freedom from harm and a healthy condition in the flesh.

One must regard wealth beyond what is natural as of no more else than water to a container that is full to overflowing. Real value is generated not by theaters and baths and perfumes and ornaments but by natural science.

Diogenes, one of Oinoanda's wealthiest men, had paid for the column because he wanted to share with his fellow citizens the secrets of happiness he had discovered in the philosophy of Epicurus, who was also the key Greek figure in the development of science and the scientific method.

But we tend to forget the virtues of Epicurus, who aimed to attain a happy, tranquil life, characterized by peace and freedom from fear and the absence of pain, when we think about hedonism.

No wonder, a well-mouthed Epicurean advertising campaign today can be devastating because of its power to precipitate global economic collapse.

The author is a senior writer with China Daily.

(China Daily 02/04/2012 page5)

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]]> 2012-02-03 20:05:54 http://www.chinadaily.com.cn/opinion/project/2012-02/03/content_14534780.htm 2012-02-03 17:33:11 http://www.chinadaily.com.cn/opinion/project/2012-02/03/content_14534780.htm FRANKFURT – A systematic and broad failure of regulation is the elephant in the room when it comes to reforming today's Western capitalism. Yes, much has been said about the unhealthy political-regulatory-financial dynamic that led to the global economy’s heart attack in 2008 (initiating what Carmen Reinhart and I call “The Second Great Contraction”). But is the problem unique to the financial industry, or does it exemplify a deeper flaw in Western capitalism?

Consider the food industry, particularly its sometimes-malign influence on nutrition and health. Obesity rates are soaring around the entire world, though, among large countries, the problem is perhaps most severe in the United States. According the US Centers for Disease Control and Prevention, roughly one-third of US adults are obese (indicated by a body mass index above 30). Even more shockingly, more than one in six children and adolescents are obese, a rate that has tripled since 1980. (Full disclosure: my spouse produces a television and Web show, called kickinkitchen.tv, aimed at combating childhood obesity.)

Of course, the problems of the food industry have been vigorously highlighted by experts on nutrition and health, including Michael Pollan and David Katz, and certainly by many economists as well. And there are numerous other examples, across a wide variety of goods and services, where one could find similar issues. Here, though, I want to focus on the food industry’s link to broader problems with contemporary capitalism (which has certainly facilitated the worldwide obesity explosion), and on why the US political system has devoted remarkably little attention to the issue (though First Lady Michelle Obama has made important efforts to raise awareness).

Obesity affects life expectancy in numerous ways, ranging from cardiovascular disease to some types of cancer. Moreover, obesity – certainly in its morbid manifestations – can affect quality of life. The costs are borne not only by the individual, but also by society – directly, through the health-care system, and indirectly, through lost productivity, for example, and higher transport costs (more jet fuel, larger seats, etc.).

But the obesity epidemic hardly looks like a growth killer. Highly processed corn-based food products, with lots of chemical additives, are well known to be a major driver of weight gain, but, from a conventional growth-accounting perspective, they are great stuff. Big agriculture gets paid for growing the corn (often subsidized by the government), and the food processors get paid for adding tons of chemicals to create a habit-forming – and thus irresistible – product. Along the way, scientists get paid for finding just the right mix of salt, sugar, and chemicals to make the latest instant food maximally addictive; advertisers get paid for peddling it; and, in the end, the health-care industry makes a fortune treating the disease that inevitably results.

Coronary capitalism is fantastic for the stock market, which includes companies in all of these industries. Highly processed food is also good for jobs, including high-end employment in research, advertising, and health care.

So, who could complain? Certainly not politicians, who get re-elected when jobs are plentiful and stock prices are up – and get donations from all of the industries that participate in the production of processed food. Indeed, in the US, politicians who dared to talk about the health, environmental, or sustainability implications of processed food would in many cases find themselves starved of campaign funds.

True, market forces have spurred innovation, which has continually driven down the price of processed food, even as the price of plain old fruits and vegetables has gone up. That is a fair point, but it overlooks the huge market failure here.

Consumers are provided with precious little information through schools, libraries, or health campaigns; instead, they are swamped with disinformation through advertising. Conditions for children are particularly alarming. With few resources for high-quality public television in most countries, children are co-opted by channels paid for by advertisements, including by food industry.

Beyond disinformation, producers have few incentives to internalize the costs of the environmental damage that they cause. Likewise, consumers have little incentive to internalize the health-care costs of their food choices.

If our only problems were the food industry causing physical heart attacks and the financial industry facilitating their economic equivalent, that would be bad enough. But the pathological regulatory-political-economic dynamic that characterizes these industries is far broader. We need to develop new and much better institutions to protect society’s long-run interests.

Of course, the balance between consumer sovereignty and paternalism is always delicate. But we could certainly begin to strike a healthier balance than the one we have by giving the public far better information across a range of platforms, so that people could begin to make more informed consumption choices and political decisions.

Kenneth Rogoff is Professor of Economics and Public Policy at Harvard University, and was formerly chief economist at the IMF.

www.project-syndicate.org

]]> 2012-02-03 17:07:32 http://www.chinadaily.com.cn/opinion/2012-02/03/content_14534717.htm

Han Han, a prominent blogger, launched a legal battle against an anti-fraud crusader Fang Shimin, better known by his pen name Fang Zhouzi, for defamation over alleged ghostwriting. The drama started on January 15 when another blogger Mai Tian alleged that the “miracle” of Chinese writer Han Han was created by his father, Han Renjun, and his marketing team. While Han refuted the claim and Mai deleted his blog post and apologized to Han Han, the whole debate gained momentum when Fang Zhouzi joined the fray, challenging Han Han’s prolificacy and efficiency in a series of comments and blogs. Although Han Han is now taking the case to the court, suing Fang for libel, the story seems far from the end.

@Lifujiangdeweibo Editor at Tianjin Renmin Publishing House  Everyone has the right to question and thus deserves to be questioned. There is no point in filing a suit for the war of words between Fang and Han. Even the literary master Lu Xun abused some people and also got abused, but he never took the case to the court. One can't help but suspect that Han's legal action intends to "use law to suppress dissidence". If Han wins the case, freedom of speech will suffer and make a bad start for those who want to question officials or governments.

@Marila Founder of Hulian Video Library It is not wrong to doubt Han Han's success, that it results from the collusion of the media, businesses and this era; and it is not wrong to criticize his writing, his lack of fine education and original thoughts, because you have the freedom to voice your opinions. However, to claim that he has a team of ghostwriters and his talent is just packaged by his marketing team means libel. Please be fair, in this full-of-malice world.

@Tangjiasanshao Member of the 8th Chinese Writers' Association I felt very alarmed by Han's case. Even a writer with a stack of manuscript as thick as 1,000 pages can be suspected to have others write on his behalf, how on earth can us Internet writers possibly prove our innocence, when the computers we write with have changed for God knows how many times? I hope the court can heavily penalize irresponsible rumor-makers like Fang, otherwise no writer feels secure from unjustified suspicion.

@Feixiangwangxiangligang Director-general of cctime.com Actually the suspicion is always a feeling and can never be really proved. Can Fang get Han's father to admit his ghostwriting? Can Han use his manuscripts as sound evidence? Impossible. Since Han enjoys the status of a celebrity, he has to pay the price of being suspected. And the most powerful refute is writing another good book, instead of swearing, offering a reward, or sarcastically sitting on his manuscript and looking at the camera.

@Liuliu Writer As a celebrity like Han Han only seeks 100,000 yuan ($15,826) in compensation for the libel and the court is not likely to approve the total amount, can't we see how cheap reputation is in China? When little price has to be paid for slandering, no one would worry about the penalty when doing so. How horrible the society is!

@Zhaoxiao Professor of University of Science and Technology Beijing The war of words between Han and Fang really disappoints me. Many people claim to be neutral and objective, but they took sides immediately in the dispute. Why does Fang lack support? Isn't it because that he made too many enemies in his anti-fraud crusade? Isn't it because that the media, who conspired to make Han Han a legend, has to maintain his perfect image to get themselves off the hook? We all know that it is quite normal for a 16 or 17 literary boy to get "considerable help" from their parents.

According to some lawyers, it is very difficult to judge whether a person's works are ghostwritten or not. Nevertheless, whatever the court decision may be, Han Han will not walk away unscathed. After the accusations started, Han once said that he regretted being a writer. Although Han Han stated publicly that he will bow out of the dispute from now on, it will be a long time before this damaging and attritional war of words comes to an end that is satisfactory to both sides.

 

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]]> 2012-02-03 09:48:11 http://www.chinadaily.com.cn/opinion/2012-02/03/content_14529284.htm

The Arab League has withdrawn its observer mission from Syria because the violence in the country has not subsided. The West puts the blame squarely on the Bashar al-Assad government.

Syria has been in the headlines for some time now, the focus being on Bashar al-Assad after the fall of Muammar Gadhafi in Libya. It has shared the headlines, though, with the global financial crisis, which refuses to go away, and the eurozone and United States debt crises, which are an extension of the financial crisis.

Iran, in the meanwhile, has been in the news because of its nuclear program, which it claims is for peaceful civilian purposes and not for developing nuclear weapons, but the West will have none of it. To all intents and purposes, the Syrian crisis should be seen as a logical extension of the crisis created over Iran's nuclear program by the West, which makes the Western pressure on Syria a proxy war against Iran.

Iran's so-called nuclear issue is not of recent making. Nor is the reason - the good old black gold - despite the hoopla created by the West to the contrary.

The Middle East produces most of the petroleum, fueling the world economy, though there are other large oil exporters such as Russia, Venezuela and Nigeria. Oil, however, can be officially traded only in US dollar terms and that too at the London or New York oil exchanges. And therein lies the problem.

Some Middle East countries, especially Iran and Iraq (when Saddam Hussein was in power) understood and derided the Western stranglehold over them. To loosen this stranglehold, Iran announced in mid-2004 that it would set up an "Iranian oil bourse" to compete with the London and New York oil exchanges. The implications of an Iranian bourse succeeding in selling oil in non-dollar terms would have been profound on the financial world, especially on the hegemony of the greenback.

Washington understood that but preferred putting Iran off the radar for the time being, that is, not subjecting it to the same treatment as Iraq. The idea was to first deal with Iraq and then zero in on Iran. Now that the US is ensured of getting Iraq's oil, it is time for Iran to "fall in line". After all, the US consumes close to a quarter of the world's oil and has to ensure its steady supply to run its economy.

Syria fits into this jigsaw puzzle because it is considered close to Iran, for the Alawite minority dominates the Syrian government. The Alawites are a sect of Shi'ite Islam - and Shi'ites are in overwhelming majority in Iran. The ties between Iran and Syria are indeed strong. Their influence extends further west to Lebanon and the Gaza Strip, where Palestinians have been subjected to greater suffering just because Hamas is in power. The condition of Palestinians in the West Bank, ruled by Fatah, is not much better, though.

All this may appear too complicated to fathom. But Palestinians complete the jigsaw puzzle. Iran has the second largest natural gas reserves and the third largest oil reserves in the world, and vociferously backs the rights of the Palestinians to establish their own state. Like Iraq, Iran too is one of the oldest civilizations and home to people who value their freedom and dignity.

But Iranians' freedom to deal with their affairs to the best of their ability has been put to serious question by the presence of American, French and British warships and aircraft carriers in the Persian Gulf. Of course, Iran is being blamed for igniting the crisis by threatening to block the Gulf of Hormuz through which a majority of the oil tankers from and to the Middle East pass. But the situation we see in the Gulf today is certainly not only of Iran's making.

The US-led West has implemented its alternative plan by imposing more sanctions on the pretext of thwarting Iran's nuclear designs - when the real motive is to suffocate Iran. Had Iran buckled under pressure, the Syrian government would have collapsed under its own weight. Or, if the Syrian government had collapsed by now, Iran would have been easier to deal with.

Since neither of the two has happened, a US-led attack on Iran now seems threateningly possible - more so, because Israel has already read the riot act to Iran. The West doesn't want to believe Iran even after it has invited the International Atomic Energy Agency to inspect its nuclear facilities. Perhaps the West wants nothing less than complete submission from Iran, and only an attack on the country can ensure that.

Once Iran is attacked, the Palestinians will be pushed farther away from the picture. The sufferings of Iranians and Syrians will become mere news clips, just like those about their Iraqi and Afghan counterparts have become. And the West will be patting itself on the back for yet another "humanitarian and democratic mission".

The US doesn't buy Iranian oil. The European Union has decided to do the same and the rest of the world has been told to follow suit. Any bank transacting oil deals with Iran will now be blacklisted in the financial market.

This will make things extremely difficult for countries like China, Japan and India, which import a major part of their oil from Iran.

Therefore, it is important that they find ways to secure their supplies from Iran. India has proposed something unique: to pay for Iranian oil in gold. As novel as it may sound, the idea is simply unsustainable.

As an alternative, however, Iranian oil can be exchanged for the Chinese yuan, Japanese yen or the Indian rupee by three of Iran's largest oil importers. And for that to happen, at least China and India (and hopefully, Japan and South Korea) have to join hands and send out a clear signal to the West that they don't want another war in the Middle East. And they can count on Russia's support for that.

The author is a senior editor with China Daily.

(China Daily 02/03/2012 page9)

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Living in New York, I have the great pleasure of having Chinese friends come from afar to visit. Yet instead of seeing the real jewels of New York, such as St. Patrick's Cathedral, the Broadway musicals, the Metropolitan Museum of Art, Central Park, Brooklyn Bridge and jazz in the West Village, they are desperate to visit the Fifth Avenue and Woodbury Common outlets, about an hour's drive from Manhattan, where some 200 discount luxury goods stores are located. And it is not just the women it's also the men.

In fact, not all of these friends are wealthy. Yet many seem to have no hesitation when it comes to buying a luxury item that might cost one or two months' wages.

The whole thing reminds me of my year in Honolulu, Hawaii in the early 1990s. Pearl Harbor was the top destination for American visitors. But for Japanese tourists, it was the Ala Moana Shopping Center, where you saw young Japanese women shopping till they dropped.

Now Chinese shoppers have started to create a similar scene in not just New York, but also in other major US cities as well as the European cities of Paris, London and Milan. Such shopping sprees reach their peak during the Lunar New Year holiday. In fact, "Chinsumer" has already been coined to describe such lavish Chinese shoppers.

In the United States, Chinese and Brazilian tourists have become the top spenders. On average, a Chinese tourist spends $6,200, compared with the $4,000 average for foreign tourists to the US.

No wonder that US President Barack Obama signed an executive order on January 19, authorizing the Department of Homeland Security to expedite the visa processing for Chinese and Brazilians and increase the visa quota for Chinese and Brazilians by 40 percent. It was clearly meant to be an effective measure to create American jobs at a time when unemployment remains high.

According to estimates, some 1.15 million Chinese tourists visited the US in 2011. That number is expected to be more than 2 million by 2015, contributing $14 billion to the US economy.

The World Luxury Association has predicted that China is likely to replace Japan as the world's largest luxury market this year. In addition to the first-tier cities such as Shanghai and Beijing, second and third-tier cities have also seen the expansion of international luxury goods stores.

A recent study by Bain & Company shows that of the 25-30 percent growth in the sales of luxury goods on the Chinese mainland, more than 60 percent was by new customers. McKinsey & Company predicts that China will account for 20 percent of luxury sales worldwide by 2015.

While all this is good news for luxury goods companies, as well as countries popular with Chinese tourists, it is a solemn reminder of the widening income gap in China, where more than 100 million people still live in poverty. In terms of GDP per capita, the World Bank ranks China as the 90th country in the world, lower than many African nations.

To me, the blind worship of luxury goods, the irrational shoppers and the lack of interest in the real jewels of other cultures and countries sound multiple alarm bells for our society.

The author, based in New York, is deputy editor of China Daily US edition. Email: chenweihua@chinadaily.com.cn

(China Daily 02/03/2012 page8)

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China's long-held, low-cost manufacturing advantages are dwindling and it must make greater inputs into innovation

Manufacturing has played a key role in the growth of China's economy. In 2010, China's manufacturing output accounted for 19.8 percent of the world's total, slightly higher than US manufacturing's 19.4 percent. Statistics from the United Nations show that the output of China's manufacturing reached $2.05 trillion last year under the early 2011 exchange rate, compared with the $1.78 trillion of the United States.

Despite this, "made in China" still lags behind the US in terms of its wealth creation capabilities. Statistics show that China's manufacturing productivity and value added are about 4.38 percent of the US', 4.37 percent of Japan's and 5.56 percent of Germany's. China had only 17 of the world's 500 most influential manufacturing brands in 2010. Lying at the middle- and low-end of the world's manufacturing chain, China's exports are mostly low-technology, low value-added products, while its imports are high-tech, high value-added products.

China's export momentum has primarily been driven by quantity expansion. The country's export model, which is dominated by the processing trade, has caused a large volume of transferred trade within its borders. In fact, the biggest contributors to its trade surplus are China-based transnational corporations. In the last 10 or so years, the country's mushrooming foreign trade has to a large extent been driven by foreign-funded enterprises, which have in particular played a very important role in its exports. Take 2008 as an example. In that year, China's export surplus was $295.4 billion, of which $170.6 billion, or 57.7 percent of the country's total trade surplus, was created by China-based foreign-funded enterprises,.

Due to their relatively low resource prices, the marginal productivity of capital in China and other developing nations, a ratio used to measure the additional output resulting from the use of an additional unit of capital, is usually higher than in developed nations. According to a survey conducted by the World Bank of 12,400 enterprises across 120 Chinese cities, the average net assets return ratio of China's industrial enterprises exceeded 15 percent in 2005, while the ratio for private enterprises was 19 percent and for foreign-funded enterprises it was 22 percent. Such a high capital return ratio stems from a long-time distortion in the country's labor prices. Compared with a faster-growing capital return ratio, China's labor remuneration has shown much slower growth in recent years. From 1998 to 2008, the country's industrial enterprises achieved an average growth in profits of 30.5 percent year-on-year, far higher than the 9.9 percent growth in its labor remuneration.

Given that there is not too much space for boosting the growth of its middle- and low-end manufacturing, China should try to press for the transition to high-end manufacturing.

Still mired in the consequences of the global financial crisis, the US has accelerated a review of its industrial structure, as indicated by President Barack Obama's vow to get back the "lost American manufacturing" from China. According to an estimate made by the Boston Consulting Group, about 15 percent of China-based US enterprises will go back to the US from China in the next five years amid the rapid rises in China's labor prices and Washington's expedited efforts to reverse the trend for outsourcing, a tendency that emerged about a decade ago, especially with regard to electronics, appliances, furniture, plastic, rubber and metal products and computers, which account for 70 percent of the US' imports from China and cost US consumers about $2 trillion every year.

In an era when the global manufacturing pattern is undergoing drastic changes, the US' future competitive advantage will undoubtedly come from the rejuvenation of its manufacturing sector.

What will such an increased US manufacturing edge mean to China?

With the expected rises in China's labor costs as well as the yuan's appreciation and its resources and environmental bottleneck, China's long-held low-cost advantages in the manufacturing sector are ebbing away. The possible "double lose" of both high-end and low-end manufacturing advantages will be a big challenge to China in the decade ahead if the country fails to set up a solid foundation for innovation and successfully raise productivity as soon as possible.

China has no reason to delay its efforts to increase its input into research and development and innovation, which will facilitate its transformation into a technological power.

The author is an economics analyst with the State Information Center.

(China Daily 02/03/2012 page8)

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The priority of the No 1 Document of the Chinese central government has changed from water conservancy investment in 2011 to agricultural science and technology in 2012. As key resources such as land, water and labor are becoming more scarce, the increase in productivity from investment in water conservancy and adoption of new technologies will be critical to producing adequate amount of and nutritious food for a more well-to-do and urban population in China. But for China, it is not a choice between water conservancy and technology. It needs both.

The government's priority to accelerate investment in water conservation and irrigation projects in 2011 was widely welcomed, for it was long overdue. The government must keep this momentum and increase investment in irrigation for small farmers. It is important that these investments generate higher water supply capacity and help minimize the harms caused by droughts and floods. The government should also set up an effective monitoring and evaluation system to evaluate the progress, results and impact of such investment.

China's agricultural technology is at the forefront of the world in terms of crop yield for major staples such as rice, wheat and corn. Indeed, China's agricultural sector has seen tremendous improvements in productivity in the last few decades. According to United Nations Food and Agriculture Organization estimates, rice and corn yields in China were almost two times higher in 2010 compared to 1980, while wheat yield was about three times higher. Now, China produces 50 percent more rice and wheat than the world average per unit of land.

But agricultural mechanization technologies, which have become more important as labor becomes scarcer still have much room for improvement. A shift from land-saving technologies to land- and labor-saving technologies is required. Water- and energy-saving technologies as well as environmental protection technologies also need to be improved. China can learn from advanced countries to push the frontiers of technology development in these areas.

Climate change will have a huge impact on China's agricultural sector. Agriculture will have to adapt to the changes in temperature and precipitation. Besides, extreme weather events like floods, droughts and storms are likely to become more frequent. And agriculture can be used to mitigate climate change by switching to low-carbon farming practices. For that, new policies, investments and technologies will be critical.

The adoption of agricultural technologies varies according to regions across China. Although many Chinese farmers have welcomed modern technologies, there are many others, particularly in the central and western regions, that continue to rely on traditional technologies. Research shows that while large numbers of small farmers in the northern and eastern regions have benefited by growing Bt cotton, for example, adoption rates have been much lower in the western region.

Similarly, there is evidence that agricultural research investment in the central and western regions is much lower compared to that in the eastern region. Therefore, the government has to pay more attention to less-developed regions, where farming has become unattractive and less productive.

It is particularly important that new agricultural technologies are low on cost and highly divisible to meet the needs of small farmers. Modern technologies must suit different contexts, too, and be able to coexist with traditional technologies.

In addition to the needs and priorities of small farmers, technological innovation must also consider other economic and cultural conditions such as local gender and diversity issues. And education campaigns to increase farmers' awareness about these new technologies and other public policies, such as technical assistance, finance and regulation, needed to accelerate the adoption of modern technologies must be put in place.

An International Food Policy Research Institute study shows that investment in agricultural research and development (R&D) has the largest impact on agricultural growth and second largest impact on poverty reduction. It is next only to rural education investment. But public investment in agricultural R&D in China is still below the desired level.

The government has to invest more and at a faster rate, in agricultural R&D, increasing it to at least 1 percent of agricultural gross domestic product in 2012, 1.5 percent in 2015 and 2 percent in 2020.

Also, the government should improve regulations, policies and incentives for the private sector to increase its investment in agricultural R&D. Chinese enterprises in the agricultural and food sectors have increased exponentially over the past decade, but their investment in R&D is still comparatively small. The protection of intellectual property rights, tax concessions and secured access to land for experiment are some of the policies that the government should consider continuing to improve the situation.

Moreover, China can also strengthen collaboration with international agricultural research systems such as the Consultative Group for International Agricultural Research and its supported agricultural research centers. The system is undergoing reform and has developed large research programs on rice, wheat, corn, climate change, forestry, nutrition and policy. There is a great potential for Chinese institutions to learn from and contribute to these programs.

The author is director-general of International Food Policy Research Institute.

(China Daily 02/03/2012 page9)

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]]> 2012-02-03 08:06:35 http://www.chinadaily.com.cn/opinion/2012-02/03/content_14529306.htm A photograph showing a huge LED screen that reads, "Warm congratulations to Xinshao county for being included in poverty-stricken areas and becoming the main battlefield for the country's poverty alleviation work" has been widely forwarded online and sparked a heated debate. But this seemingly absurd phenomenon involving a county in Shaoyang of Hunan province has a reason and logic of its own, says an article on xinhuanet.com. Excerpts:

Though local departments later clarified that the "poster" was not approved and removed it, the "excitement" over the slogan was not groundless. Once included in the country's poverty-stricken areas, a county can get huge funds for its uplift. For example, eight counties in Shaoyang have been granted at least 560 million yuan ($88.87 million) each a year as poverty relief and development fund, which explains why some local governments are trying their best to be included in the league.

Being poverty-stricken is more of a boon for some counties. Statistics show that despite making great progress and even becoming economically strong, many poverty-stricken counties still prefer to be bracketed in that category, because they can continue enjoying preferential policies. To some extent, this is the reason why the number of such counties seems to be increasing instead of reducing.

Worse, some poverty-stricken counties have used the financial aid and favorable policies to build luxury office buildings instead of using them to improve people's livelihoods and strengthening the local economy. No wonder, people are questioning whether the management of poverty reduction funds is standardized and strict, and whether some adjustments in the assessment system are necessary.

(China Daily 02/03/2012 page9)

]]> 2012-02-03 08:06:35 http://www.chinadaily.com.cn/opinion/2012-02/03/content_14529302.htm An 84-year-old man in Chongqing fell sick after being forced to sleep on the doorstep of his youngest daughter's house during Spring Festival because none of his six adult children agreed to "accommodate" him. The refusal of some grown-up children to take care of their parents is aggravating the aging problem in the country, says an article in Changjiang Daily. Excerpts:

He Daxing has six children who had agreed to take care of him in turn. But owing to a rift among his children, his youngest daughter refused to allow him into her house - she alleged that she was always "treated as inferior to her brothers". The senior citizen's other children refused to accept him for reasons of their own.

In the end, the homeless man was forced to sleep on the doorstep of his youngest daughter and fell ill. How could the traditional Chinese virtue of filial piety be reduced to such an extent?

During the four days that he was forced to sleep under the sky, some of her daughter's neighbors gave him quilts to keep warm. But why didn't the community residents' committee provide more timely help to protect the senior citizen from harm? The hands-off attitude of the committee workers and his daughter's neighbors also reflects a kind of social indifference.

China as a nation still attaches great importance to filial piety. Unfortunately, materialistic desires have distorted some family and social values. It's time people as well as the authorities took measures to inculcate traditional virtues, including filial piety, among children to pass them on to the next generation.

(China Daily 02/03/2012 page9)

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Comment on "A toothless victim of its own success" (China Daily, Jan 28)

I thank Raymond Zhou for his comments on the CCTV Spring Festival Gala. I'm so glad he also feels the event "is by no means a reflection of Chinese reality" and a "saccharine version of forced joy and a pain to watch".

As a foreigner, I feel I have to be careful about what I say and who I say it to while criticizing what is considered an "iconic cultural event" for Chinese people. After reading my thoughts in Zhou's words, I felt a whole lot more comfortable that my views are shared by, at least, a reasonable cross-section of the Chinese people.

Chinese society has changed significantly over the past few years but the CCTV gala does not represent that change. It represents an age when television was considered the latest luxury item.

Now that most of the Chinese people are living a more comfortable life what they need are things that give meaning to their lives. The CCTV Spring Festival Gala presents a contrived but kitsch version of Chinese culture; it is almost entirely devoid of meaning or, in Zhou's words, "it is a toothless victim of its own success".

Ross Grainger, via e-mail

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 02/03/2012 page9)

]]> 2012-02-03 08:06:35 http://www.chinadaily.com.cn/opinion/2012-02/03/content_14529293.htm

Promoting innovation in science and technology for agriculture as the main theme of this year's No 1 document, jointly released by the Communist Party of China Central Committee and the State Council, not only demonstrates the central authorities' concern for agriculture. It also points to their consideration for the long-term development of agriculture.

With bumper harvests for eight consecutive years, the total grain output reached 571 billion kilograms in 2011. Whether the country can sustain such momentum will have a significant bearing on the country's overall economic growth and social progress amid the deepening influence of climate change and increasing shortages of arable land and water.

With the per capita arable land area only 0.09 hectares at present and continuing urbanization, it is unrealistic to rely on expanding the area of arable land for greater production. And relying on increasing the use of fertilizer and pesticide will not just affect farming efficiency but also cause long-term damage to the environment.

So innovation in science and technology is the only reliable way to ensure long-term and healthy agricultural development. Science and technology contributed more than 50 percent to agricultural growth last year, showing how important they are to grain production.

What is particularly noteworthy is that the central government has already made policies in this regard. The financial support for students majoring in agricultural science will be increased to encourage more students to apply for the major. The State will also pay for the tuition of those graduates who choose to work in rural areas. And more will be done in the coming years to develop free polytechnic schools for training rural technicians.

All these measures will hopefully attract more talent to agricultural science and technology, where there is currently a shortage of talent as an increasing number of young rural villagers have migrated to work in urban areas.

The central government's expenditure in agriculture increased from more than 200 billion yuan ($31.8 billion) in 2003 to more than 1 trillion yuan last year. With the promise from the central authorities that the rate of increase of the input into agricultural science and technology will be no less than the increase rate of financial revenue, there is more than enough reason to believe that science and technology will play a more important role in agricultural production.

(China Daily 02/03/2012 page8)

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German Chancellor Angela Merkel's visit to China presents a good opportunity for the two governments to promote their comprehensive bilateral cooperation and enrich their strategic partnership.

The fact that this is Merkel's fifth trip to China since she took office in 2005 and that last year Wen Jiabao paid his fifth visit to Germany as premier, highlights the frequent high-level exchanges China and Germany have maintained in recent years.

Sino-German trade and economic cooperation has thrived and become the cornerstone of bilateral interaction. Germany is China's biggest trade partner in the European Union. And, despite the severe eurozone crisis, bilateral trade reached about $170 billion in 2011. The two countries are working together to push the figure to $300 billion by the year 2015.

Closer economic and trade ties between Germany, well-known for its engineering and high-tech industries, and China, the biggest developing economy, will not only benefit both countries, but also help boost the stagnant European economy and even the world economy.

There is also great potential in the two sides expanding their cooperation in such fields as environment protection, agriculture, new energy and culture. As this year marks the 40th anniversary of the founding of diplomatic ties between the two countries, Germany is hosting a Chinese Culture Year to promote mutual understanding and cultural exchanges.

With continuous efforts from both sides, there is clearly a bright future for their relations. This will also contribute to enhancing bilateral ties between China and the EU.

Since the eurozone crisis broke out in 2009, Chinese leaders have repeatedly thrown their weight behind Europe and expressed their confidence in both the European economy and the euro and China will continue to make Europe one of its main investment markets.

Wen said after his meeting with Merkel that China is considering greater involvement in the European Financial Stability Facility and the upcoming European Stability Mechanism. A stable and prosperous European economy is not only in the interests of Europe, but also China.

At a time when the world is facing formidable challenges ranging from the European debt crisis to the escalating Iranian nuclear crisis, both countries have everything to gain if they can deepen mutual trust and cooperate more on the world stage.

(China Daily 02/03/2012 page8)

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]]> 2012-02-02 19:59:08 http://debate.chinadaily.com.cn/debate.shtml?id=121 2012-02-02 17:38:05 http://bbs.chinadaily.com.cn/forum.php?mod=viewthread&tid=729949&fromuid=611403 2012-02-02 09:21:42 http://bbs.chinadaily.com.cn/thread-729937-1-1.html 2012-02-02 09:21:42 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522602.htm

(China Daily 02/02/2012 page8)

]]> 2012-02-02 07:57:23 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522207.htm

The plight of 29 Chinese workers who are being held captive by rebels in Sudan has gripped the hearts of all Chinese people. Their safety and rescue have become the country's top concern.

Since their abduction five days ago, China has responded quickly.

An emergency mechanism has been activated for the rescue of the workers, who are employed by a Chinese company undertaking a road project in Sudan.

A Chinese team arrived in the Sudanese capital of Khartoum on Tuesday to assist the Chinese embassy in its efforts to secure the release of the workers and hold consultations with the Sudanese authorities. China also lodged serious representations to Sudan over the incident.

It is hoped all these efforts will yield the safe return of the workers.

In another development, 25 Chinese workers who were held captive by Egyptian locals on Tuesday were freed on Wednesday. The abductions highlight the importance of safeguarding the safety of Chinese nationals working or traveling overseas.

In recent years, the number of attacks involving Chinese tourists or workers in foreign countries has been on a rise. In October, 12 Chinese sailors were brutally killed by a group of armed men on the Mekong River and earlier last year it had to evacuate more than 30,000 Chinese nationals from the escalating turbulence in Libya.

Chinese companies and individuals suffered huge losses of property and investments in Libya last year.

As our economy integrates more closely with the rest of the world, an increasing number of Chinese enterprises and individuals have launched operations or formed business ties overseas.

Statistics indicate that by the end of 2009 China had set up a total of 13,000 overseas enterprises in 177 countries and regions and its overall overseas assets are more than $1 trillion.

It has become a demanding task for the government to provide timely protection to the country's interests abroad. A country with a strong economic muscle should have the capacity to protect its citizens and interests, no matter where they are.

This is especially relevant considering tensions are growing in an increasing number of countries, threatening to boil over into armed conflicts or even regional turbulences. Overseas-bound Chinese individuals and companies should always remain vigilant and be aware of and alert to any potential risks and take sensible precautions to safeguard their lives and property.

(China Daily 02/02/2012 page8)

]]> 2012-02-02 08:00:31 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522202.htm

When a tourist to Hainan Island complained on his micro blog that he was charged 3,600 yuan ($571) for a simple three-dish meal at a seafood stall in Sanya during the Spring Festival holiday, local government officials responded to the widespread criticism it triggered by saying it had received no complaints about the service industry during the holiday week.

This sparked even more sarcasm and criticism from netizens, which prompted the local government to try and squirm away from the barrage of criticism by saying its remark about zero complaints only applied to food stalls. It then said it would prosecute anybody badmouthing Sanya.

Statistics show 484,000 tourists elbowed into Sanya, a coastal city of 685,000 permanent residents, during the Spring Festival holiday week, bringing 3.32 billion yuan of tourism revenue to the city.

But if the city fails to uphold the standard of service visitors expect or tolerates exploitation it will soon lose its attraction for many.

The local authority must not ignore the widespread online complaints about pricing and service and should investigate such complaints diligently.

The National Tourism Administration's report of 2011 ranked Sanya sixth from bottom in its tourist satisfaction list of 50 tourist cities. High prices were cited as the main reason for visitor dissatisfaction. In the report a year earlier it was ranked 24.

When the State Council earmarked Hainan as a world-class tourism island in 2010, the support of the central authority should have been the opportunity for the island to develop itself in an all-round way. But Sanya's rapid slide down the rankings and the growing numbers of tourists disappointed by their visits in the past two years show the local authority needs to make greater efforts if the island is to be world class.

It was encouraging then that the vice-governor of Hainan province was willing to face up squarely to the problems on Wednesday and pledged to strengthen supervision of service standards.

But how and when his words are translated into action remains a test for both the local authorities and residents.

(China Daily 02/02/2012 page8)

]]> 2012-02-02 08:00:31 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522177.htm

EU leaders should also heed China's needs when they come with their wish lists to ensure mutually beneficial cooperation

German Chancellor Angela Merkel is to pay a formal visit to China in early February, just as China has entered the Year of the Dragon. Soon after that, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso will visit China together to attend the postponed 14th China-EU Summit.

As a Chinese saying goes, one does not visit the temple for nothing. Public media home and abroad are speculating profusely on the purposes of these visits by European leaders. Obviously, the European leaders, being the first group of important Western visitors to China in the Year of the Dragon, are not here just to say Happy New Year. In their briefcases, as some predict, there will be a long list of demands which they will present to the Chinese side.

Indeed, never before has Europe been in greater need of China's help. In the past year, the Europe Union has been beset with a festering sovereign debt crisis. More recently, thanks to a series of measures, that debt crisis seems to be less disruptive, though the problem is far from over. Uncertainty abounds. In the first half of the year, Italy, Spain and some other countries will face a debt peak and mounting difficulties in debt financing. Not long ago, France and Austria lost their triple-A ratings. Europe must fight an uphill battle to find new growth poles, achieve economic recovery and realize full employment.

It is not surprising, therefore, that a struggling Europe has cast its eyes on China. At the just concluded Davos Forum, there was a discussion topic named "putting China's trillions to work". Merkel, and many European leaders, attended the forum. According to European media, if China pledged to keep buying European bonds, this would give the eurozone an important lifeline. Europe also hoped to see more Chinese investment to help create jobs and boost economic growth.

In fact, China has never stopped giving Europe help when it was in difficulties. The greatest help China gives to Europe is its political support. While a lot of countries and institutions were talking down Europe, China did not join the chorus, but rather "lonely" conveyed its confidence in the euro and the European integration. At such a critical juncture, confidence in Europe is more valuable than gold.

China's support of Europe is not lip service. Trade between China and Europe in 2011 reached a record of $500 billion. While remaining China's largest trading partner, the EU is China's largest source of imports. According to EU statistics, in the first three quarters of last year, EU export to China grew nearly 7 percentage points faster than its overall exports. According to media reports, China has significantly increased its investment in Europe through mergers and other means.

Supporting Europe not only reflects the true meaning of the China-Europe Comprehensive Strategic Partnership but also gives expression to the traditional Chinese way of treating others. The Chinese people value friendships forged in times of adversity and believe that a friend in need is a friend indeed. When a friend or partner needs us, it is quite natural for us to lend a helping hand. When China was hit by the catastrophic earthquake in Wenchuan and after other natural disasters many European countries came to our aid immediately. And if the EU can overcome the crisis quickly, it will help China's economy stay healthy and keep growing.

We hope to see the continued development of the mutually beneficial cooperation between China and Europe. When visiting China, European leaders should not just bring with them a list of demands for China, but think what China may need of them, what support Europe can give to China and what they can do for the long-term stability and development of China-Europe relations.

If European demands for China are mostly in economic terms, Chinese hopes of Europe are mainly political, namely, mutual respect and treating each other as equals. To date, the European Union has kept up its arms embargo against China which smacks of the Cold War mentality. China has become the world's second largest economy and its socialist market economy has achieved great success. But the EU is still reluctant to recognize China's market economy status. While expressing welcome to more Chinese investment in Europe, the EU sits tight watching public opinion politicize such investment. "China is an economic threat" is quite popular in the EU. Chinese enterprises willing to invest in Europe must still tackle numerous difficulties and obstacles.

Some in China suggest that we link these problems with continued Chinese support to Europe. But this is not the mainstream opinion, and few expect these problems to be solved quickly. However, sustained development of China-Europe relations need the support of both peoples. European leaders should make good use of every opportunity to explain the relevant EU policies to the Chinese people.

After all, what kind of image does the EU want to build in the hearts and minds of the Chinese people? Is it an EU that asks for help while acting superior? Or an EU that is committed to mutual benefit, win-win and common development with China? We hope that European leaders can display vision and give us a convincing answer. Let's wait and see.

The author is a Beijing-based scholar of international relations.

(China Daily 02/02/2012 page8)

]]> 2012-02-02 08:00:31 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522172.htm

Along with most of the rest of the country, and indeed the world, whose negative attention it unfortunately attracted, I was nauseated by the story of 2-year-old Yue Yue, who was ignored by 18 passers-by when she was run over twice in Foshan, Guangdong province.

At the time there was nationwide soul searching about what to do and much breast-beating about the sad state of morality in the country. Some commentators said that people in China only help their families and nobody else, others suggested that because China is a developing country everyone is only looking out for themselves. I don't agree with either of these views. Look at the outpouring of grief and compassion here for the victims of the 2008 Sichuan earthquake, or at smaller recent examples, such as last month in Wenzhou, where bystanders rescued a 5-year-old girl after she was trapped under the wheels of a car.

As a lawyer, I think the best suggestion that came out of Yue Yue's death was the proposal that China introduce a good Samaritan law. In common law jurisdictions such as the United States and England, such laws protect people who help others from being successfully sued when coming to the aid of another person, except in cases of gross negligence. In civil law jurisdictions, such as much of Europe, there is a duty for passers-by to come to the aid of a victim and failure to do so can result in a prosecution.

It is clear to me that Chinese people would like to be good Samaritans but feel constrained by the fear of being sued by the victim or someone masquerading as a victim. In a recent public opinion poll of Beijing residents, 87 percent said that people do not help senior citizens who have fallen because "they want to avoid trouble". I have the same fear.

In several highly reported and widely discussed cases, Chinese courts have held that good Samaritans were legally liable for another person's injuries because nobody would have helped the victim unless they had caused the problem. But this presumption of guilt flies in the face of Chinese norms where always being ready to help others for a just cause and never hesitating to do what is right, have been core societal virtues since at least Confucius' time.

Wang Shengjun, president of the Supreme People's Court, has recognized that such warped rulings weaken the legal system and last month he implored chief justices with provincial high courts to "legally protect good Samaritans" and to not let them be misjudged.

Two major cities have already proposed good Samaritan laws. Shenzhen's proposal takes a common law approach to protecting good Samaritans, except in cases of gross negligence. It wisely goes beyond the Western model, in that it also establishes a fund to financially reward such exemplary behavior. It also does something brilliant in that it punishes those despicable people who falsely accuse others of injuring them. The penalty includes fines and imprisonment. It also avoids imposing a duty to rescue, which a recent survey found more than three-fourths of respondents opposed.

Shanghai has taken a different, but flawed path. They propose financially rewarding people (or their heirs) for heroic deeds. This does nothing whatsoever to shield good Samaritans from being successfully sued for their good deeds.

A national good Samaritan law would enable people to act on their instincts and help build a harmonious society. As Albert Schweitzer, who received the Nobel Peace Prize in 1952 for his "Reverence for Life" philosophy, said: "As the sun makes ice melt; kindness causes misunderstanding, mistrust, and hostility to evaporate".

The author is a senior advisor to Tsinghua University and former director and vice-president of ABC Television in New York.

(China Daily 02/02/2012 page8)

]]> 2012-02-02 08:00:31 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522167.htm

German Chancellor Angela Merkel's visit to China on Thursday and Friday will be a good opportunity for her to brief China's leaders on the outcome of the European Union summit on Monday. Merkel will also argue that it is in China's interest to invest more in Europe.

The German chancellor will be pleased with the EU summit results, which endorsed Berlin's long-standing wish for more fiscal discipline in EU member states. But she will still face pressure to provide more funds for struggling Greece and to take more measures to boost domestic demand.

The summit agreed to a fiscal compact, committing signatories to introduce a "debt brake" to national legislation. The treaty aims to force eurozone countries with high debt levels to bring their budget deficits down to 0.5 percent of their economic output, which is not an easy task. New voting rules, penalties for non-compliance and EU surveillance mechanisms should ensure the new treaty has teeth. EU member states (except the United Kingdom and the Czech Republic) expect to sign the new treaty next month and it will come into force once the 12 euro countries have ratified it.

The agreement on the fiscal compact came at a time when many political leaders and International Monetary Fund (IMF) Managing Director Christine Lagarde were questioning the austerity-centered policy backed by Merkel. Some have likened the new pact to outlawing Keynesian-style fiscal stimulus.

The EU summit backed away from proposals to increase the euro firewall (the European Financial Stability Facility) if necessary from 500 billion to 750 billion, something that the IMF has argued for to improve market sentiment. Merkel, however, is likely to agree to such an increase at the next EU summit in March.

As leader of Europe's biggest economy, Merkel has had to tread a careful line between stumping up the largest sum of money for the euro bailout fund and assuring German voters that the money would indeed be put to a good cause. German public opinion is tired of bailing out the financially less prudent countries in the eurozone.

In addition, the summit agreed to measures to promote employment, cut red tape for small and medium-sized enterprises, and complete the single market. Priority will be given to the digital market and the energy market.

Merkel will not land in Beijing with a begging bowl nor will she be pressing China to buy more European bonds. But she is likely to explain to President Hu Jintao and Premier Wen Jiabao that it is very much in China's interest to support the EU in the current crisis.

The EU is the biggest market for Chinese exports and any economic downturn in Europe would have damaging consequences for China. Trade between the EU and China reached $566 billion last year, almost 10 percent of the total global trade flow. Europe accounts for just over 20 percent of global GDP and about one-fifth of global trade. Six of the 10 most competitive economies in the world are European. More than one third of the world's top firms are based in Europe. Also, the average per capita GDP in the EU is about $32,500 compared to about $4,500 in China. So Europe still matters in the global economy.

Given that she will be accompanied by a large business delegation, Merkel will also make it clear that the EU wants to see a level playing field for German and EU companies operating in China, for companies such as Siemens and Thyssen have complained about unfair practices. But Chinese enterprises will complain about the investment barrier in Europe and the difficulty of importing high technology.

Although the eurozone crisis will be a central theme, Merkel will also discuss global economic developments and the prospects for growth, which will be a priority for Mexico's G20 presidency.

Further issues include Iran, though the two sides take different views on further sanctions to try and stop the alleged nuclear weapons program that Teheran is developing. China has described the latest EU sanctions, including a ban on Iranian oil imports, as "not helpful".

Syria will also feature high on the agenda and Merkel will try and convince China to support the proposals put forward by the Arab League at the United Nations, which are aimed at political change in Damascus.

European and bilateral issues will be interlinked in Merkel's visit. This year marks the 40th anniversary of diplomatic relations between Germany and China. The bilateral relationship has been strengthened in recent years through regular government-to-government consultations. These have covered areas such as urbanization, health and the environment. And Merkel's visit can be viewed as a further demonstration of the importance Berlin attaches to the relationship.

The author is director of the EU-Asia Centre in Brussels.

(China Daily 02/02/2012 page9)

]]> 2012-02-02 08:00:31 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522162.htm

How can transparency and better information disclosure help solve the heavy metal pollution problem China is facing today? The cadmium pollution incident in the Guangxi Zhuang autonomous region provides a vivid example.

According to news reports, industrial waste discharges, containing high levels of cadmium, contaminated a 100-kilometer stretch of the Longjiang and Liujiang rivers in southern Guangxi in mid-January. The first signs of the spill came after mass death of fish in the river. The pollution is now flowing toward Liuzhou, a city of 3.7 million people.

On Jan 23, the Liuzhou government began releasing data on the cadmium levels in the Liujiang River almost on an hourly basis. The government harnessed modern communication tools, even the social media, to disseminate information. The media widely applauded the move and praised the officials for their transparency during an environmental disaster.

In sharp contrast to the Liuzhou government's approach is that of the local government of Hechi, where the pollution originated. Cadmium pollution was reportedly detected in Hechi as early as Jan 15. But the Hechi local government did not notify its counterpart downstream, Liuzhou, until Jan 18. Worse, no specific information was made public by the Hechi officials except for an official media release on Jan 19.

This lack of concrete, reliable information from Hechi seriously impeded disaster relief efforts by city officials downstream. Also, secrecy fanned the flames of panic, which was illustrated in people's mad rush to supermarkets to buy bottled water after the scandal hit the headlines.

The real power of information disclosure, however, goes way beyond disaster relief. It can do a lot more to prevent disasters. The cadmium pollution incident unveiled the weaknesses of day-to-day supervision over polluting industrial facilities. Information disclosure can play a key role in strengthening this aspect.

In an era of booming resource-intensive industries, such as mining and smelting, China's environmental protection apparatus seems barely able to keep up in terms of monitoring and inspection capacity. The difficulty that the Hechi government had in identifying and confirming the exact source of cadmium pollution shows that supervision was at best inadequate before the incident.

As early as 2009, after a series of lead pollution cases, the Ministry of Environmental Protection had called for a "blanket inspection" of heavy metal pollution facilities. This means, in theory, local governments should already have an inventory of local industrial facilities that release heavy metals, with basic information on who is discharging what.

With such information in hand, a local government should be able to quickly pinpoint a source of pollution when it sees an unusual increase in the monitoring data of certain pollutants. This apparently did not happen in the case of Guangxi and the Liujiang River. Media reports show that local environmental inspectors were not even sure where the wastewater went in some suspected facilities.

It is clear that the government's environmental protection apparatus, low in capacity and short in manpower, cannot fight this battle alone. The public, especially non-governmental organizations (NGOs) working for the protection of the environment, has a role in contributing to such efforts.

But information disclosure is a must for the public to participate effectively. With basic information on where the polluting facilities are and what they discharge, the public can help environmental protection bureaus keep an eye on the performance of certain companies and even pressure the facilities to improve their environmental performance by leveraging their buyers or financiers. This has already been proven to work.

Some officials may fear that making too much pollution information public could trigger panic among people. But results from a recent initiative by the Ministry of Environmental Protection should be able to dispel such concerns. In August 2011, the ministry made an unprecedented move by releasing detailed pollution information on more than 1,900 lead-acid battery facilities across the country. It was the first time that information on an entire industry's environmental performance was made public.

Reactions to the initiative were overwhelmingly positive. A close scrutiny of the data by the media, environmental NGOs and the public resulted in corrections and a dataset of improved quality, which would only help the ministry to better supervise the listed facilities. Updated data were released again to the public in November. But no panic followed. Instead, what we got were improved data and an empowered public.

Environmental information disclosure is credited for having helped many industrialized countries achieve significant reduction in toxic releases. Systems such as the US Toxics Release Inventory incur only minimal administrative cost, but are highly effective. There is no reason why China, still exploring ways to rein in rampant pollution, should not make use of such readily available instruments.

The author is Greenpeace East Asia's toxics campaign head.

(China Daily 02/02/2012 page9)

]]> 2012-02-02 08:00:31 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522469.htm Statistics show that Hainan province received about 1.35 million tourists from home and abroad during Spring Festival, up 20.3 percent year-on-year. Sanya city alone played host to about 490,000 tourists who spent on average 2,150 yuan ($340) a day. But Hainan has many other facets to it than just Sanya and money, says an article in Southern Metropolis Daily. Excerpts:

Netizens, including some celebrities, have posted about 40,000 comments in just two days in response to a micro-blog that describes how a tourist was overcharged at a seafood restaurant in Sanya. The collective outburst seems to suggest that a person is more likely to be overcharged in a place like Sanya.

Even though Hainan has come to be known as an "international tourism island", it is surprising to see the official micro-blog of Sanya government's information office claim that "there is no complaint against food hygiene or honest operation during the golden week" (Spring Festival holiday). The provincial administration for industry and commerce, however, said 45.36 percent of total complaints hotlines received during Spring Festival were from Sanya.

Perhaps we should consider the distinctiveness of the traditional holiday when we hear of large number of consumers having been deceived or overcharged. But the incidents in Sanya cannot be explained just by the demand and supply law.

Local departments have taken preliminary measures and have promised to follow them up with further regulations and punishment. But if the situation doesn't improve, it will harm tourism development in Hainan, especially Sanya. Hainan is surely ruing the lack of soft power in its tourism development.

(China Daily 02/02/2012 page9)

]]> 2012-02-02 08:00:31 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522216.htm A bus driver in Ningbo, Zhejiang province, on duty Spring Festival received some snacks and a 10-yuan hong bao (red envelop with lucky money) from a passenger. The gift expresses the passenger's gratitude toward the driver and all others who work during public holidays to make life convenient for holidaymakers, says an article on people.com.cn. Excerpts:

Since the bus company forbids drivers from accepting money from passengers as personal gifts, the driver tried to return the 10 yuan ($1.59) to the passenger.

During Spring Festival, when most of the people were enjoying their holiday with their families and friends, bus drivers and many other people such as police personnel and street cleaners had to work.

The hong bao conveyed the passenger's obligation to the driver on the traditional Chinese festival, and in this sense, the driver is beyond reproach even if he accepted it. In fact, the real value of the hong bao is not money; it is the feeling.

Passengers should also help drivers and contribute to the building of a harmonious public transport environment by abiding by rules such as waiting in queue and vacating a seat for those in need. This is perhaps the best way to express one's regards for people such as bus drivers, who sacrifice their holidays for the convenience of others.

(China Daily 02/02/2012 page9)

]]> 2012-02-02 08:00:31 http://www.chinadaily.com.cn/opinion/2012-02/02/content_14522212.htm Comment on "Flexible Retirement Age" (China Daily, Jan 21)

The Ministry of Human Resources and Social Security has been studying different possibilities of changing the retirement age or making it more flexible. But I believe the negative impacts of such a change will outweigh the positive.

The ministry believes extending the retirement age will "postpone pension deficiencies". According to the 2011 pension report, the pension deficit in the country was almost at 70 billion yuan ($11.9 billion). But what happens if not all workers want to extend their careers? So instead of postponing the problem, the government should find ways to improve the economy and fund retirees' pensions.

The article also says that if workers extend their careers beyond the "State retirement age", it will be harder for new candidates to find jobs. The higher the retirement age, the more difficult it is for young people to get employment. And a large population of unemployed youth means less circulation of money in the economy. People recently out of college barely have any money, while retirees at least have a possible pension to look forward to.

Extending the retirement age cannot possibly end gender discrimination either. The average retirement age for men is 60 years and for women 50-55. If workers can choose their own retirement age, these numbers may begin to balance out. Gender discrimination is an important issue, but it is more important for young job seekers to find jobs, and for money to continue circulating in the economy.

Carmella Tomasetti, via e-mail

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 02/02/2012 page9)

]]> 2012-02-02 08:00:31 http://bbs.chinadaily.com.cn/thread-729946-1-1.html

]]> 2012-02-01 19:29:21 http://bbs.chinadaily.com.cn/thread-729656-1-1.html 2012-02-01 09:22:52 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14515312.htm

(China Daily 02/01/2012 page8)

]]> 2012-02-01 07:58:07 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14514787.htm

That efforts to dilute the cadmium content in the Longjiang River in the Guangxi Zhuang autonomous region are still being made, more than two weeks after it was first discovered, shows the seriousness of the contamination.

Despite the optimism local officials have displayed about the safety of the water supply in the city of Liuzhou and areas surrounding the lower reaches of Longjiang River, it is legitimate for local residents to question why local authorities withheld information about the pollution for days before telling the public.

Apart from the efforts to dilute the cadmium content and to supply residents with enough safe water for daily use, local authorities need to investigate thoroughly the root cause of the incident.

Seven people suspected of being involved with the contamination are being held in custody, but it is still not clear which enterprise was the main source of the pollutant. This points to lax oversight by the local environmental protection authorities over the heavy metal producers in Hechi city, where the contamination took place.

That the source of pollution is yet to be identified 15 days after such a serious contamination of a major local river sends the message that there is much to be desired when it comes to work of the local environmental protection authorities.

The authorities have argued that the karst topography of the region means there are a number of rivers and streams flowing underground, which makes it very difficult to find out whether a heavy metal plant is discharging pollutants through them.

But if that is the case, the question is whether such a location is suitable for such enterprises in the first place.

And as the industrial plants are there, local environmental protection authorities should have been responsible for making sure that such heavy metal plants treat their waste before discharging it.

So the investigation should not merely endeavor to find out the plant responsible and how it managed to flout the relevant regulations and discharge the pollutant. It also needs to find out whether the local environmental authorities are culpable and why they failed to assess the environmental impact of these enterprises before they started operations.

It is not the first time that hazardous chemicals have been leaked or dumped by enterprises into rivers. This incident should be a wake-up call to the rest of the country, those places with chemical plants in particular.

Now seven heavy metal plants in the city of Hechi have been suspended from production and 11 more are required to make amends for deficiencies in work safety or their production licenses will be revoked. Other places should learn from this lesson and tighten supervision over chemical enterprises to prevent similar incidents occurring.

(China Daily 02/01/2012 page8)

]]> 2012-02-01 08:01:50 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14514782.htm

Trade protectionism against China is on the rise in the United States. The Obama administration has brought trade cases against China at nearly twice the rate of the previous administration, and it is also creating a trade enforcement unit to investigate the "unfair trade practices" of China and other countries.

Nevertheless, are these protectionist measures the right remedy for solving the US' grim unemployment problem?

The US economy has been in a downturn since 2008. And although its GDP in the second half of 2011 was finally back to the level it was in 2007, the employment rate still remains well below the pre-crisis level.

The US desperately needs to create jobs.

The main reason for its sluggish recovery is that the US is in a deep structural recession. Its financial institutions and residents all need time to restructure their balance sheets, deal with bad assets, and reduce their debt leverage ratio.

International trade and business outsourcing are not key factors causing the high unemployment in the US. From 2006 to 2009, the US trade deficits reduced by half, yet unemployment has doubled over the same period.

With insufficient domestic demand, the US government has anchored its hopes on exports to stimulate economic growth, pledging to double exports in five years by 2014. Over the past two years, the growth rate of US exports to China is much higher than the overall growth in US exports. So increasing protectionist measures and deliberately provoking trade friction with China will hurt the US.

As long as the law of the market is followed and the comparative advantages of different countries are brought into play, trade, outsourcing and investment among countries does not mean a country will take the jobs of another country. Instead it provides more job opportunities for all countries. Resorting to protectionist measures hinders international trade, outsourcing and investment, and ultimately harms all.

(China Daily 02/01/2012 page8)

]]> 2012-02-01 08:01:50 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14514777.htm

Deepening reform and expanding opening-up will inject new vitality into economic development over the next two decades

China's economic growth declined to 9.2 percent in 2011, down from 10.4 percent a year earlier, as the result of the tightened monetary and banking policies adopted to rein in inflation. This moderate decline is within government expectations and still overshadows economic performance in the rest of the world.

But there are still some in China and beyond who have expressed concerns over the country's economic prospects, believing China's fast-growing economy has already run out of steam after more than 30 years of marvelous development and that the pace will continue to decelerate. Some have even predicted the country's economy will suffer a hard landing. Such concerns and conclusions, however, contravene China's basic national conditions and the huge economic potential that remains to be tapped.

There is no doubt the country's economy can maintain a few more decades of fast growth if continuous reforms are adopted to release this new vitality.

China's enormous demand potential is yet to be realized and stimulating this will help keep the economy on a fast growth track. By the end of 2011, the country's urbanization ratio had reached 50 percent, a symbolic figure in the country's history, but still far behind that of developed countries. The ratio is expected to rise to 70 percent in the next two decades if it is raised by one percentage point ever year. An ever-growing urbanization ratio will lead to the expansion of investment and consumption. Statistics show that one higher percentage point in China's urbanization ratio will mean an investment of about 1 trillion yuan ($158.26 billion) in infrastructure construction every year. This, together with corresponding increases in public services, represents enormous potential for the country's economic development.

China's per capita GDP was $4,200 in 2010 and is expected to reach $12,000 in 2026, a level that serves as the demarcation line between middle-income and high-income countries under the World Bank criteria. That means China will walk out of the "middle income trap" after another 15 years of fast development and begin moving toward the rank of high-income countries. However, China's fast development will not inevitably stop even at that time, because the experiences of neighboring Japan and South Korea show that the fast-growing economic momentum of a country will come to a halt only after its per capita GDP reaches $17,000.

With the transformation of its economic development pattern, the country's efforts to expand domestic demand and adjust its income distribution structure will be further pushed forward and these will act as the driving force for national economic development.

The Chinese government has vowed to raise the resident consumption ratio by 10 percentage points during the 12th Five-Year Plan (2011-2015) period and accelerate adjusting its income distribution structure. These, if realized, will create an additional 4-5 trillion yuan every year in the country's consumer goods retail value. Compared with its 48.6-percent investment to GDP ratio in 2010, China's ratio of resident consumption to GDP was only 33.2 percent. The ratio was 70 percent in the United States the same year. The releasing of such enormous consumption potential will bolster a fast, steady and sustainable economic development in the coming 20 years.

China's enormous capital potential will be another driving force behind its fast development in the decades ahead. By the end of October 2011, the country's yuan assets had reached 80 trillion. Such colossal capital power, if better utilized through reforms of its monetary and financial systems, will support the country's fast economic development for a long period.

And if the country's $3 trillion-strong foreign reserves are shifted from the current heavy investment in the US national debt to overseas energy and resource purchases, it will break its long-standing resource bottleneck. China should use the lion's share of its foreign reserves to purchase more resources and energy in the international market and to obtain more overseas acquisitions as a way to boost its self-innovation capability and facilitate its long-term development.

China's ongoing agricultural modernization and mechanization and its accelerated efforts to transform the sector from a long-established extensive to an intensive model will also emancipate a large number of rural laborers, which will offer a solid labor supply for urban development. The so-called Lewis turning point that some demographers and sociologists believe China has reached will not come for decades.

Despite its huge development potential, China still needs some reforms to ensure it is released. But if the country continues adhering to the policy of deepening reform and expanding opening-up, then its fast economic development is guaranteed for the next few decades.

The author is standing vice-chairman of China Center for International Economic Exchanges.

(China Daily 02/01/2012 page8)

]]> 2012-02-01 08:01:50 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14514772.htm Han Han, the iconic young Chinese writer, is again the center of attention in China after doubts were raised about the authenticity of his writing. It started when Mai Tian, a former senior manager of Baidu - China's largest search engine - raised the suspicion that Han's father and one of his publishers Lu Jinbo might be ghostwriting Han's words. Mai later apologized for the accusation, but the debate has taken on a life of its own, especially after professional whistleblower Fang Zhouzi joined in. The alleged ghostwriters have denied the accusation and Han reacted by promising 20 million yuan ($3.16 million) to anyone who could provide evidence that someone was writing in his stead. Actress Fan Bingbing increased the bounty by another 20 million yuan.

But is Han's writing really that great to warrant all the fuss? I tend to agree with those who claim only great writers like Shakespeare are worthy of the suspicion that their works were written by someone else. As far as Han is concerned, I don't think a ghostwriter is writing for him. A cost-benefit analysis doesn't support hiding behind someone to produce works of youthful, though steadily improving, writing. Ghostwriting also takes talent and effort.

Mai also claimed Han would not be able to post so many blogs as he was always racing cars. But when I reviewed my own blog, I found that I am at least two or three times as prolific as Han while still maintaining a day job, writing columns for newspapers, raising two kids, doing household chores, translating novels and often serving as a volunteer. And I have the disadvantage of being 40 years old.

I don't always agree with Han, but I enjoy reading his posts. He is agile, adapting his style and is capable of producing one phenomenon after another. At the moment, perhaps his talent lies more in marketing than in writing. But we probably haven't seen the best of him yet.

Much of the ghostwriting controversy hinges on the presence of natural genius in him. For instance, one point of contention is the spontaneity of the article that made his name, "Humanity in a Glass". At stake in this argument is the truthfulness of Han's natural talent in producing the piece for a competition in the short time allocated to him. In China, we seem to idolize prodigies who can produce great works of art in 10 minutes. Or seven steps in the case of the poet Cao Zhi (AD 192-232) who, in response to a challenge by his jealous brother, Prince Cao Pi (AD 187-226), produced a touching poem lamenting the evils of sibling rivalry before he had finished walking seven steps. For writers, quick wit isn't nearly as essential as we make it sound. Good writing takes time, writing and rewriting, and good editing can also work wonders on an otherwise mediocre piece. Good writers do not just sit there and wait for inspiration. The knowledge required for their writing often resides not in their heads, but in the world, to be acquired or utilized. Skills can be developed and improved. Great writers are hard workers.

The world is littered with people who wish they had talent, but the peaks are scaled by those who though they have ordinary talent make extraordinary efforts.

So stop such hooey about Han's natural genius. Not everyone is lucky enough to be born with an intellectual silver spoon, but most people can make improvements with conscientious effort. Han sets a good example. He thinks for himself. He reads much and often. He has acknowledged the immaturity of his earlier works.

We should follow the example of Han's father who, while the rest of his peers tried to twist and bend their kids to suit the needs of tests, nourished Han's talent and eventually enabled Han to be the phenomenon he is today. Such nurturing is probably much more worthy of our attention than trying to spot natural genius.

The author is a US-based instructional designer, literary translator and columnist writing on cross-cultural issues.

(China Daily 02/01/2012 page8)

]]> 2012-02-01 08:01:50 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14514767.htm

China-Africa ties over the past three decades have yielded magnificent results, characterized by frequent high-level political visits, strengthened economic and trade relations and burgeoning bilateral socio-cultural communications.

But some Western countries and their media have been trying to drive a wedge between China and African countries, posing a potential threat to the harmonious development of Sino-African relations.

Western critics use the following viewpoints to justify their actions: First, Chinese investments flow into only Africa's mining industries or into countries with abundant natural resources. Second, Chinese enterprises do not fulfill their social responsibilities. Third, Chinese investors prevent their skills and technologies from being passed over to African societies. And last, the continuous influx of Chinese products to Africa is detrimental to the industrialization and modernization of the continent's countries.

The history of Sino-African relations would be the best testimony to prove these criticisms are absurd and groundless. Even though Sino-African ties have diversified greatly in content since the 1980s, there has been no change in their basic feature of equality and reciprocity.

In 2011, China's direct investment in Africa was $1.7 billion, spread over fields such as commerce, agriculture and infrastructure construction - and, contrary to what the West says, it was not restricted to natural resources. The minerals and petroleum that China imports from African countries every year comprise less than 10 percent of the continent's total output, while the ratios for the United States and the European Union are more than 30 percent.

If China, a small stakeholder, were to be blamed for denuding Africa of its natural resources, how can the West, the big player that it is, be exempted from the same criticism?

As far as social responsibilities are concerned, Chinese enterprises have never been wanting.

Take PetroChina's refinery plant in Khartoum, Sudan, for example. PetroChina has provided local people with a beautiful artificial lake and an oasis, and spent huge amounts on its sewage treatment plant. The company also attaches great importance to donations; it donates funds to local hospitals and schools every year, and has earmarked a special budget to support collaborations in personnel training, technology and research and development with Sudanese universities.

China's detractors seem less interested in the severe environmental problems caused by Western oil companies such as Shell, ExxonMobil, Chevron and Total in the Niger Delta in Nigeria and Cabinda of Angola.

China lays special emphasis on capacity building in its relations with Africa. It has helped train more than 30,000 specialists and sponsored more than 30,000 students from Africa. It sends experts on medical services, and agriculture development and infrastructure building missions to African countries every year, too. The Chinese experts help their African counterparts with their technologies and skills. Also, many Chinese enterprises, following the policy of localization, recruit African employees, providing them both with work and skill training.

Regarding the development of African countries, the Chinese government spares no effort in promulgating supportive policies. What is of utmost importance is that China does not attach political or economic strings to its promises, reflecting that it respects the development modes that African countries have chosen.

As a matter of fact, China has been targeted mainly because some Western powers fear that its engagement with Africa would result in the decline of the West's traditional hegemony in the continent and not because they care for African countries' development.

In a sense, the condemnations of and attacks against China could be defined as ideological propaganda to justify the West's actions against its antagonists. The logic is evidently an offshoot of the Cold War mentality, which assumes, erroneously though, that Sino-Western relations in Africa are still zero-sum games rather than dialogues and cooperation.

The Western hype over China's "misbehaviors" in Africa has made China determined to further ameliorate its ties with the continent's countries.

The development of the Chinese mass media lags far behind its economic and political development. This would explain why Chinese are often silent when people from other countries, including some from Africa, misinterpret or even attack China for its benign and beneficial role in Africa. To make the rest of the world aware of China's role in Africa, the Chinese mass media have to break the monopoly of their Western competitors in Africa and spread the facts, as well as the views of the Chinese government and think tanks across the world.

Besides, the Chinese government should pay close attention to the problems that could crop up in the interactions between the increasing number of Chinese in Africa and the local people.

This is very important to guarantee the sustainable development of Sino-African relations in the long run.

The author is a research scholar at the Graduate School of the Chinese Academy of Social Sciences.

(China Daily 02/01/2012 page9)

]]> 2012-02-01 08:01:50 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14514762.htm

Edgar Snow is one of the most widely read and influential American journalists in modern China, but few people (including Chinese) know that he also made a unique contribution to facilitate former US president Richard Nixon's historic visit to China in 1972.

In 1970, Snow visited China for the third and last time since 1960, and became the harbinger of the thaw in Sino-US relations by reporting his interviews with Mao Zedong and Zhou Enlai who gave him the official word "to transmit to the United States the message that US President Richard Nixon would be welcome to visit China, either as a tourist or in an official capacity". Life Magazine published two of Snow's articles to make that invitation known.

Snow received a message from Nixon in early February 1972, saying his "distinguished career is widely respected and appreciated". Snow was to have come to China again to cover Nixon's visit, which began the process of normalizing US-China relations. That would have been a fitting finale to Snow's work of promoting understanding and better ties between China and the US. But illness held him back and he died on Feb 15, in the very week that Nixon was to travel to China.

The Chinese and US governments established diplomatic relations in 1979 on the condition that the US should sever "diplomatic relations" and abrogate the "mutual defense treaty" with Taiwan authorities and withdraw American forces from the island province. The US government recognizes the People's Republic of China government as the sole legal government of China and the Chinese position that there is but one China, and Taiwan is part of China. In 1982, another joint communiqu on the issue of US arms sales to Taiwan was signed. These developments seemed to match what Snow had predicted and aspired and worked for.

Though many years have passed since then, people in both countries still believe that in view of the strategic interests of both countries, the Chinese and US governments should develop a much healthier and better relationship. On the part of China, it would be appropriate to quote the message Chairman Mao gave Snow in 1960.

Chairman Mao said that as long as he was alive, China would never resort to war to settle a dispute, but China would always oppose the export of counterrevolution. "We on our part will shoulder the responsibility of world peace", Chairman Mao said. He told Snow that he hoped American people would understand "whether or not the United States recognizes China, or whether or not we get into the United Nations We will not defy laws, human and divine, like the Monkey King who stormed the Palace of Heaven. We want to maintain world peace. We do not want war. We hold that war should not be used as a means to settle disputes between nations. However, not only China but the United States as well has the responsibility to maintain peace".

He told Snow one other thing: "For as long as I am alive, Taiwan is China's affair. We will insist on this."

In this respect, Snow made the following reflections in his last book, The Long Revolution: "A world of relative peace between states is as necessary to China as to America." And he wrote in the last chapter of his book, The Other Side of the River: "We must have faith that the American nation also has a better sense of the general direction of history and in the end will have more to say about the future than some of the strategists of the moment. Whether we shall eventually carry (America) onto the higher ground of a victory shared with all men depends on the ability of our 'alert and knowledgeable citizenry' to see beyond immediate selfish interests, and act far more objectively than they have ever been required to do before."

Edgar Snow died 40 years ago, but people in China will always remember and cherish the memory of this simple and yet great American journalist-author from Missouri who made a unique and outstanding contribution to further Sino-American understanding and friendship in the 20th century. As this year marks the 40th anniversary of Nixon's visit to China, we hope more American people and politicians will cherish and follow what Snow said.

The author is vice-president of China Society of People's Friendship Studies.

(China Daily 02/01/2012 page9)

]]> 2012-02-01 08:01:50 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14515070.htm Chinese people might have spent the Spring Festival holiday differently but have more or less the same complaint about returning to work after seven days: depression, weight gain and low work efficiency. Though the advice of physicians and psychologists may help, it's important that people change their opinion about work, says an article in Yangtze Evening News. Excerpts:

The post-holiday syndrome has its roots in the conventional thinking that work is simply a means of survival, separate from holiday. This dichotomy makes the transition from holiday to work particularly unpleasant.

While most of the people were enjoying their Spring Festival holiday, many had to work and others took days off in turn. But they had a sense of satisfaction because their work made life convenient for the hundreds of millions enjoying the holiday.

Nowadays, work is more than just a means of survival; it entails social value. People can change society for the better both at work and during holidays. They will be more willing to resume work after a holiday if they value their work and others respect and reward them for their labor.

It is true that during holidays, people can relax with their families. But it is also true that people can work to improve the life of their families and make the life of even strangers convenient if they value their work.

Work and holiday combine to make a person's life meaningful. Thus to enjoy one's work and to work for the improvement of society are perhaps the best remedy for the post-holiday syndrome. A person can resume work after a holiday without a hitch only if he/she attaches equal importance to both.

(China Daily 02/01/2012 page9)

]]> 2012-02-01 08:01:50 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14514796.htm Fang Zhouzi, the "science cop" known for exposing pseudoscience and academic fraud, is facing a lawsuit from popular Chinese writer Han Han for "accusing that Han's works were in fact ghostwritten". Han alleges that the accusation has soiled his reputation, says an article in Changjiang Daily. Excerpts:

Han needs evidence to prove what he says is right. One the other hand, Fang's analysis and criticism will attract more attention because of his procedure. So a more comprehensive exchange between the two could reveal the facts.

Since a public topic could influence not only the image and reputation of the parties involved but also public interests, there is need for public questioning and discussion. But first we should figure out what the bottom line of the public discussion is - whether certain remarks are acceptable or have the potential to cause negative effects. Only by making the facts public can we ensure that opinions and comments are impartial.

Besides, in any open public discussion, the public is both the onlooker and the participant. The public should decide whose attitude could directly influence the quality of the discussion and mood of the parties involved. If public opinion is impulsive, it will blur the focus and eventually make the discussion superficial.

The proper atmosphere for digging out the truth can be created only if the public exercises calm and sees things rationally. And only then can the discussion develop normally and according to common rules.

This is specifically what we should learn from this lawsuit.

(China Daily 02/01/2012 page9)

]]> 2012-02-01 08:01:50 http://www.chinadaily.com.cn/opinion/2012-02/01/content_14514792.htm Comment on "Woman's death sentence rouses public debate" (China Daily, Jan 20)

In the article on Wu Ying's death sentence, any reader can feel the damage that money and greed cause to society's standard behavior. The article says Wu committed the crime because she was aware of the abundance of hot money and the lack of investment channels. I would like to add: "Therefore, she pretended to help others as a good Samaritan".

I don't want to get into the debate on whether death penalty is right or wrong, because it involves many issues, from religious beliefs to ethics. But I think Wu deserves a harsh punishment, similar to the one meted out by the US court to Bernard Madoff, who has been sentenced to 150 years in jail after being found guilty of cheating thousands of investors of their money.

Many of Madoff's clients lost all their savings and probably many of Wu's customers suffered the same fate. A guilty sentence followed by a harsh punishment can act as a deterrent against similar criminal acts. So leniency is uncalled for.

Giorgio Ronzani, via e-mail

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 02/01/2012 page9)

]]> 2012-02-01 08:01:50 http://bbs.chinadaily.com.cn/thread-729797-1-1.html

]]> 2012-01-31 19:59:52 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14511128.htm The orange juice is a very unique product. The large commercial production for concentrated orange juice is done mostly in two regions, the states of Florida in the USA and São Paulo, in Brazil, and more recently growing in China. It is a very sophisticated production process, since it is a long-term investment (20 years) of very specific and dedicated assets. Orange trees are a sensitive crop, requiring huge efforts from growers to keep production and quality.

The recent situation where the fungicide carbendazim was found, up to this moment in 14% of all the juice imported by the USA is what I call a "not necessary point to be added to the agenda of the stakeholders involved in the USA/Brazil orange juice business". Why?

First of all, the orange juice chain was very transparent, actively communicating the situation since the beginning and offering help. Their agenda have several other topics that need efforts and dedicated time to address within collective actions involving USA/Brazil public and private organizations. To make it easier, I will resume the orange juice agenda in 3 C’s… costs, consumption and coordination. Regarding to costs, chains in Brazil (São Paulo) and USA (Florida) are having struggling cost increases, due to labour, land prices, logistics, energy, taxes and diseases. Efforts are being made in innovations to face the challenges, but much more is needed by Brazilian and USA organizations to help farmers and industry continue supplying good value, quality and safe orange juice to the consumers.

The second C, consumption, is where much more effort is needed. Due to several facts, mostly the launching of new beverages that occupied the space of orange juice, consumption is falling in very important markets, like the USA and Germany. New marketing efforts were done by Brazilians (CitrusBR and APEX), with the "I feel orange" campaign (http://www.ifeelorange.com) and also by Florida Department of Citrus, with the new campaign launched targeting non-loyalists.

The third C in the USA/Brazil agenda is better coordination among Florida and Sao Paulo organizations, being private and public, to build up a stronger industry. Participants are putting a lot of effort in Brazil to build the Consecitrus, a new fruit pricing mechanism based on international prices of juice and by-products. This will avoid disturbances and remove the focus of the chain towards productivity and juice demand development. Another necessary coordination effort are the investments in building and managing stocks to avoid price fluctuations that follows the incredible crop fluctuations that damaged the industry in Brazil and Florida. Now it will be possible to offer to juice packers a more stable supply of juice.

As seen, the orange juice chain, which employs a lot of people in Brazil and in the USA, has several challenges to be addressed in order to keep jobs, taxes for Governments and development for both regions. The USA needs Brazilian juice to complement and blend the local offer and it is a chain that is performing this way for more than 40 years, bringing safe juice to USA consumers, produced by dedicated farmers and industry in both countries. Several Brazilian investments were done in Florida and vice-versa in the last decades. It is just one industry of orange juice needing to plan its future together. The fungicide carbendazim is needed for disease control and is not registered for orange in the USA. The FDA was very effective communicating no health concerns, since the amount founded is far below the maximum levels accepted (in Europe the levels are 200 ppb). The juice will even be diluted and blended with others, which will contribute to reduce even more the final levels to the consumer. It is more a registration than a health issue.

The problem that I considered as an undesirable new issue to the agenda is the fact that unnecessarily orange juice went to media all over the world and mostly in the USA, receiving headlines that is was contaminated with fungicides. Some linking orange juice to birth defects, others telling that the flavor of juice was "fungicide". We know how headlines are built, and the following link is one example a negative headline different from the relatively positive content of the article. (http://www.latimes.com/business/la-fi-orange-juice-detained-20120128,0,3282575.story).

My hypothesis is that most consumers will only see the media headlines and will not go through more details that the juice is safe. This may lead to a reduction in consumption, and the negative impact will be felt in all juice industry, North and South American. So the question is: how do we remove this carbendazim topic from the agenda as soon as possible? The juice business already faces a full agenda.

The author is professor of strategic planning and food chains at the School of Economics and Business, University of Sao Paulo, Brazil (www.favaneves.org) and international speaker. Author of the Orange Juice Business, by Wageningen Publishers, Netherlands.

]]> 2012-01-31 11:04:17 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508317.htm

We have two questions for those pointing accusatory fingers at the Chinese government for what happened recently in a Tibetan-inhabited area of Sichuan province.

First, how should police officers respond when a police station is attacked by a violent mob armed with rocks and knives?

Second, how would police officers in their own country react to such a scenario?

Here is what happened in the Ganzi Tibetan autonomous prefecture:

In the face of the mob, which had attacked stores and bank facilities and smashed police vehicles and fire trucks at a police station, local police officers opened fire.

At least one person was killed. Many others, police officers included, were injured.

Although the death was tragic and lamentable, for the police, opening fire was the only course of action in the circumstances. They not only had to contain the commotion and restore calm, but also defend themselves and prevent even more disastrous consequences.

Police officers in Western countries also resort to force and use weapons when the occasion demands.

Our country has extremely strict rules on the use of weapons by police officers. Which is why the majority of Chinese police do not even carry weapons as part of their daily job. The actions of the mob in Ganzi constituted a clear and present danger to life and property that justified the use of force.

Yet, like always, just because it happened in a Tibetan-inhabited area and some monks were involved, the incident has been portrayed as part of the so-called repression of an ethnic group, and has been distorted by those who seek to gain by promoting the idea that religious freedom is being suffocated.

Dharamshala and its Western patrons spare no effort in exploiting such incidents to their own advantage. And, thanks to their long-term endeavors their bogus claims are voluntarily trumpeted by some Western media all too eager to engage in a new round of China-bashing.

The truth in Tibet and Tibetan-inhabited areas is the opposite of that espoused by Dharamshala and lies cannot blind people from the truth forever.

The average Tibetan, no matter where he or she is in China, has complete freedom to worship. And the government's care for the preservation of their cultural traditions is meticulous, and, we might add, generous.

Dharamshala blinds itself to the truth and seeks to obscure the facts, because a content and peaceful Tibet is detrimental to its aims.

In order to remain relevant and of use to its foreign patrons, Dharamshala has to continue instigating unrest. But the majority of Tibetans know that is not the path to a better future.

(China Daily 01/31/2012 page8)

]]> 2012-01-31 08:01:56 http://bbs.chinadaily.com.cn/thread-729627-1-1.html 2012-01-31 09:49:45 http://bbs.chinadaily.com.cn/thread-729584-1-1.html 2012-01-31 09:49:45 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508312.htm

When the glistening high-rise building that is the new headquarters of the African Union (AU) was inaugurated on Saturday in the Ethiopian capital, it became a symbol of the ever-deepening Sino-African friendship. Like other numerous China-funded infrastructure projects in Africa, the tallest building in Addis Ababa is testament to Sino-African cooperation that is gaining momentum in all dimensions.

In his speech delivered at the 18th summit of the AU on Sunday, China's top political adviser Jia Qinglin passed on cordial greetings and best wishes from President Hu Jintao and all the 1.3 billion Chinese to our African friends. Jia's visit to the continent once again highlights the importance attached by the Chinese government to advancing the China-Africa strategic partnership, which is based on political equality, mutual trust, economic cooperation and cultural exchanges.

Sino-African relations have grown vigorously and reaped progress in all areas since 2000, when both sides decided to establish the Forum on China-Africa Cooperation to further their bilateral cooperation.

The bilateral trade volume was more than $150 billion last year, and China has honored all its commitments to African countries in such areas as debt cancellation, tariff exemption, provision of concessional loans and the scheme of special loans designed to help small and medium-sized African enterprises. During his trip to Ethiopia this time, Jia announced that China will provide 600 million yuan ($95.2 million) free assistance to the AU in the next three years to fund bilateral cooperation projects.

China not only supports African countries' resolve in promoting economic and social development and advancing the integration process, it also contributes to strengthening Africa's own capacity for development.

Both China and Africa have played an increasingly important role in international and regional affairs. At a time when the world economic recovery is facing mounting uncertainties, it is a strategic move as well as a recalibration for China and Africa to further consolidate unity and strengthen cooperation.

(China Daily 01/31/2012 page8)

]]> 2012-01-31 08:01:56 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508337.htm

Increasing economic interdependence and globalization are in common interest of all and outweigh ideological differences

Deng Xiaoping began a tour of southern China on Jan 18, 1992, just after the collapse of the former Soviet Union, delivering speeches that gave fresh impetus to the country's reform and opening-up. Two decades have passed since then and new challenges have emerged. It is time to learn from the past and adapt to the new circumstances.

The world has completed a transition - from war and revolution to peace and development. A country can now source its resources from across the world to expedite its development if it succeeds in adapting to the new circumstances, but it will decline and be marginalized if it fails to do so. Unfortunately, many countries are having problems adapting to the new situation.

Some Western countries, despite their close ties with China, regard it as a threat and attempt to contain its peaceful rise and thus maintain their huge military spending. This harms their economic and social development.

Even some people in China question the wisdom of reform and opening-up, clinging to the old rhetoric of resisting the "peaceful evolution" plotted by the West, and hence, politicize and bestow ideological color on economic problems.

Such outdated views can be attributed to some people's inability to see the changes that have taken place over the past two decades and their inability to relinquish a Cold War mentality. They fail to understand that they should move beyond ideological confrontation to seek common interests and confront common challenges.

The world experienced two world wars and one Cold War in the 20th century and there have been regional wars and conflicts since 1992, including the Iraq and Afghanistan wars and the Libyan civil war, but none of the regional wars and conflicts represent an all-out confrontation between capitalism and socialism.

Increasing economic interdependence and much-improved productivity because of economic globalization have crossed the barriers of ideological and institutional differences and are the common interests of all countries. Likewise, the need to confront common challenges, including climate change, terrorism and financial crises, has shown how important it is to eliminate institutional differences. The new circumstances require all countries to shelve their ideological differences and join together to work out better ways to tackle global issues.

Economic globalization has been advancing since the end of the Cold War. While some countries have taken the initiative to become part of the global economy, others were already conditioned to do so. Many developing countries have shifted from agricultural to industrial economies or from industrial to service-based economies, and developed countries have further upgraded their service industry.

Take China for instance. Its per capita GDP has increased dramatically since reform and opening-up began more than three decades ago, especially over the past two decades. The country's per capita GDP jumped from less than $400 in 1992 to more than $4,000 in 2010, and it has lifted hundreds of millions of people out of poverty.

China's social structure has changed with its rapid pace of economic development, and the class conflict between the proletariat and the bourgeoisie has evolved into disagreements among varied social groups. This requires the country to innovate its social management to suit the changing times, for instance, by combining the use of the Internet and modern communications technologies.

Faced with new social conflicts, Chinese policymakers should deepen their understanding of the changes and balance the interests of different social groups. It is important to allocate more resources to help grassroots people to realize social equity and justice.

Lending ideological color to economic management has been the general problem with socialist countries in the past. This is because socialist countries, which grew out of capitalism or feudalism, tended to not only emphasize the advantages of socialism over capitalism, but also politicized and lent an ideological color to economic problems.

The truth is a country's macro-economy, industries and companies have their own laws of development, and to relate economic success in all its aspects to the superiority of socialism over capitalism goes against the law of economic development.

The time of war and revolution is over. So the ideological color that was splashed on economics should be washed off. If the confrontation between capitalism and socialism was the external factor that lent ideological color to economics, the current phase of less-than-important ideological differences should signify the beginning of ideologically free economics.

In times of peace, while pushing forward with its development in political, economic, cultural and other fields, China will encounter some problems that will require scientific assessment.

This is the time, therefore, for all countries to go beyond their ideological differences and make concerted efforts to resolve international issues and remember that riding against the tide of peaceful development will only leave a country marginalized.

The author is director of the Multinational Corporation Research Center at the Chinese Academy of International Trade and Economic Cooperation.

(China Daily 01/31/2012 page8)

]]> 2012-01-31 08:01:56 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508332.htm

The Sino-US relationship has maintained a generally positive development momentum over the past three decades, despite occasional divergences and discord between the two countries.

Former US secretary of state Henry Kissinger was in Beijing earlier this month to commemorate the upcoming 40th anniversary of former US president Richard Nixon's visit to China and the signing of the Shanghai Communique, which as Vice-President Xi Jinping said broke the ice keeping the two countries apart.

The extraordinary strategic view and political wisdom of Chairman Mao, former premier Zhou Enlai, Nixon, and Kissinger and other older-generation leaders opened the door to a cooperative partnership and the development of the world's most important bilateral relationship, and was a testament to their shared sense of responsibility to maintain world peace and promote common prosperity for all.

The vision displayed by these leaders in 1972 has resulted in increasingly frequent top-level visits and people-to-people exchanges, an improving dialogue mechanism, pragmatic and efficient cooperation on many issues of global concern, as well as a more flexible approach to resolving their differences.

The greater and growing understanding of one another is the foundation for the building of harmonious bilateral relations. The contacts between them are now so frequent that there is no longer any unfamiliarity. Cordial relations between the two countries are being built on the relations between the two peoples, who are ready to understand, listen to and know each other. Without this it would be impossible to look at and understand each other objectively and reasonably.

China is the largest developing country, and the US is the largest developed country. But even if the two countries are at different development stages, both of them need to pursue sustainable development. Traveling on the same road in the same direction there is no reason for them to bump into each other. If the US only thinks of containing China and does not allow other countries to develop, it will only harm itself. And China will only cause itself unnecessary trouble if it regards the US as an opponent.

Both countries should discard any lingering Cold War mentality and try and see each other objectively and fairly. The US should allow other countries room to develop and China should stick to its path of peaceful and scientific development.

There is only one Earth and we should control competition so that the door is always open for greater cooperation. Both countries have their own advantages in competition and great advantages from collaboration.

Both peoples should continue to work together to ensure that the Sino-US relationship does not become a "zero-sum game" and that the two countries' cooperation continues to strengthen.

Competition should not produce or aggravate any turbulence or geopolitical conflict, nor be employed to tenaciously defend an outdated Cold War mindset. Instead, both sides should cherish peace and deepen and expand mutual trust in different fields to establish a peaceful relationship that manifests the peaceful trend of the times.

The author is vice-president of the Beijing-based Central Institute of Socialism.

(China Daily 01/31/2012 page8)

]]> 2012-01-31 08:01:56 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508327.htm

The endgame of the global financial crisis of 2008-09 has begun. The West seeks to inflate away its massive debt - by exporting inflation to the emerging East.

The World Bank recently warned developing countries to prepare for the risk of the world going into a slump like the global downturn in 2008-09 owing to an escalation in the eurozone debt crisis.

Ironically, the worst threat stems not from what could go wrong, but from the way the eurozone, along with the United States, seeks to resolve the debt crisis. Today, all major advanced economies - not just Japan, but also the United States and Western Europe - are sinking deeper into a liquidity trap.

Full recovery remains far away, as evidenced by the US Federal Reserve's recent announcement that it intends to hold short-term interest rates near zero "at least through late 2014."

In Washington, the trap was set by the exhaustion of traditional instruments of monetary policy, which prompted the Federal Reserve to initiate new rounds of quantitative easing (QE). With investors seeking higher returns, more QE has driven "hot money" (short-term portfolio flows) into high-yield emerging-market economies, inflating potentially dangerous asset bubbles in Asia, Latin America and elsewhere.

At the same time, emerging and developing countries had to move in the opposite direction of QE, that is, toward quantitative tightening. In China, interest rates were increased to 6.6 percent. In India, the central bank has raised rates a dozen times to 8.5 percent since March 2010 to bring down inflation. Brazil's central bank recently reduced rates to 10.5 percent to shield the economy from the eurozone crisis.

In his famous 2002 speech on the potential of deflation in America, Fed Chairman Ben Bernanke suggested that former US president F.D. Roosevelt's 40 percent devaluation of the dollar in 1933-1934 shows that the exchange rate policy can be an "effective weapon against deflation". But because of global interdependency, domestic rate decisions in vital economies can today facilitate or constrain growth worldwide.

Already in fall 2010, Chen Deming, China's minister of commerce, complained that "the United States' issuance of dollars is out of control and international commodity prices are continuing to rise". China was attacked by "imported inflation".

In retrospect, Washington's hot money, however, was only the first act in the ongoing crisis. The second has already begun - in Europe. Since the global crisis and the onset of the eurozone turmoil in May 2010, European leaders have tried a wide array of measures - fiscal pain, monetary easing, hollow growth, bailouts, restructurings - to contain their debt crisis, but with few results.

The remaining option: printing money.

During the past few years, financial institutions from debt-stricken eurozone countries such as Greece, Portugal and Ireland have borrowed extensively from the European Central Bank (ECB). Since May 2010, the ECB has purchased sovereign bonds from crisis-stricken eurozone member states worth 213 billion ($280 billion). This translates into increasing risks at the ECB, because of the collaterals that banks must post when they borrow money from the ECB.

In turn, the ECB has provided euro banks with massive amounts of liquidity. In December, it injected European banks with 500 billion with long loan periods of three years. The assumption is that the debt and the collaterals are sustainable.

Instead of passing the ECB money in loans to companies for employment and to stimulate the economy, banks, in turn, have re-parked the money with the ECB. As deposits at the ECB pile up, unemployment in the eurozone continues to spread.

In early January, Italy and Spain had few problems raising new funds in sovereign bond auctions. This was widely perceived as "easing of tension" in the financial markets. In turn, the ECB defended the abundant liquidity as an "effective policy measure". In reality, the ECB was allowing some banks to use its liquidity in the auctions to buy the bonds.

What's going on here? A cynic might call it debt monetization.

As the ECB is injecting the banks with cheap money, it is artificially creating demand for sovereign bonds. This allows the ECB to cut bank on its own bond purchases, which has been criticized, while pumping up artificial demand, which is not understood.

Naturally, euro banks love the ECB policy. Now they can borrow easy money from the ECB for three years at a low interest rate. If they use that money to buy bonds in crisis economies, they will get a much higher interest rate. Besides, they can re-park these bonds at the ECB as security, which allows them to borrow even more low-interest money. In the short term, this financial magic benefits the banks, the struggling economies and even the ECB. In the long-term, it is unsustainable.

When the money-printing machine eventually falls apart, it could severely harm the banks, bankrupt the cash-strapped countries and undermine the very legitimacy of the ECB.

To avoid Japan's two lost decades, the West has now opted to inflate away its massive debt burden. The domestic effect is immense deflation and continued unemployment. The Fed and the ECB both are implementing vast real exchange rate depreciation by printing money. It is the West's effort to force the emerging world to accommodate drastic inflation and thus nominal rate appreciation.

From the standpoint of the emerging East, it is comparable to successive waves of QE, which amount to debasing the value of the dollar and the euro alike. The net effect is a massive financial tsunami that has already begun to form but may eventually sweep away the emerging and developing economies alike.

The author is research director of international business at India, China and America Institute, an independent think tank in the US, and visiting fellow at Shanghai Institutes for International Studies (China).

(China Daily 01/31/2012 page9)

]]> 2012-01-31 08:01:56 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508322.htm

Foreigners may scratch their heads in wonder at the world's largest annual human migration, as more than 300 million Chinese people travel to and fro to celebrate the lunar new year.

I still remember my first experience of Spring Festival travel. In 1982 I took a four-day train ride from Beijing to the Gansu-Xinjiang border to take a jeep to a new oilfield in the Qaidam Basin. Even then it was bedlam. I can clearly recall a woman at Luoyang station thrusting her baby at me through the window so she could wrestle her way onto the train.

Thirty years have passed, but Spring Festival is still the same for many Chinese people: head home, reunite with family, share food and exchange gifts, and then try to get a ticket back to work. Perhaps the more people change the more they want reassurance that some things remain the same.

Three decades ago, a watch, a bike and a radio were the prerequisites for a wedding. A "Seagull" watch of 50 yuan ($8) or a "Flying Pigeon" bicycle of about 100 yuan was enough to prove the owner's wealth and taste.

Now an imported luxury watch is de rigueur for many. Shanghai now has a "Millionaires' Exhibition" simply promoting top-shelf items that might be the playthings of millionaires, from extravagant jewelry to private helicopters. But even the designer stores in the big cities do not seem based on the reality of most ordinary people. Many micro-bloggers have complained that the red envelopes containing lucky money that they gave to children this year were "bigger" than those of last year and that the lucky money is becoming a big burden. One 10-month-old baby in Changchun was reported to have received more than 20,000 yuan of lucky money from his grandparents and other relatives during the Spring Festival.

So the lunar new year and returning home raises the question: How to convey love? What are life's priorities? Is it the material world, measured in dollars and brand names, or in the intangible feelings for loved ones, for the deep bonds that last a lifetime from generation to generation? While the latter seems right to many, the commercial media convey the message that it is the former that is the key to happiness.

Yet the core Chinese beliefs teach admiration of the natural, and contentment in humility. Buddhism with its espousing of a simple life runs deep in many hearts. Daoist philosophy turns materialism on its head. But against these strong, millennia-old undercurrents, many modern Chinese are bombarded with the message that they should accumulate and display material wealth. Peer pressure can be overwhelming, and failure to comply can result in rejection from social circles. If the boyfriend has a bike and no car, the girl will soon be looking elsewhere. Especially if the boy prefers pedaling as it is more environmentally friendly, and shows no inclination to borrow big to acquire horsepower and gas. On top of the social pressures, big increases in domestic consumption are recommended by most policy advisors, as a way to maintain high growth in the face of slowing exports. In the stampede for possessions a faint refrain can be heard coming from the government saying that society should be modestly "relatively well-off".

With the foundations of Chinese society, the Confucian values of family, loyalty and moderation, overlaid with rocketing wealth and technological advances of over a quarter century, the Chinese new year increasingly looks like a time-warp mirror. I Facebooked my eldest son in California pondering what seems like the tenuous generational links in our family, but he said my dad was always with him, and all that he had learned from him was as straight and as true as "a flick pass from Alfie Langer", a reference to a legendary Rugby League halfback in Australia.

Chinese people have their new year to renew generational strengths, and they do it in style, and maybe overdo it, but I believe we can take a lesson from this and reflect on what's important for family.

The author is an Australian researcher collaborating with Chinese academic and commercial institutions.

(China Daily 01/31/2012 page9)

]]> 2012-01-31 08:01:56 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508342.htm Comment on "Free education expands to 15 years in Tibet" (China Daily , Jan 17)

I was very pleased to read about free schooling for children in Tibet. This is an outstanding proposal from the Chinese government. This act will benefit the region greatly in years to come. Children are the future so this investment is not just an investment for the children themselves, but also an investment in the future of the region. A well-educated country is a strong country, just as a well-educated man is a strong man.

Education is crucial to a successful life. The better the education the more opportunities a person will have when they try to find a job. I believe that receiving an education is a luxury because not every one is blessed with the opportunity to receive it, especially for children living in poverty.

The director of Tibet's educational department announced not only imparting free schooling but also opening new kindergartens, vocational high schools and senior high schools. This act will provide more jobs for teachers and faculty. These new schools will also make current schools less crowded, which will lead to a better education for the students.

The amount of 2.6 billion yuan (about $411 million) is a lot of cash, but it is an investment that is well worth it for the nation. I hope that the American government will notice China's example and try to benefit the budgeting for our own school systems.

Curtis LaMotte, via e-mail

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/31/2012 page9)

]]> 2012-01-31 08:01:56 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508976.htm The box office broke the 10-billion-yuan mark last year. In fact, the box office collection in 2011 touched 13.12 billion yuan ($2.08 billion). The number of film productions and screenings both increased last year. The Chinese film industry has entered a phase of prosperity and we should find ways to ensure that it lasts, says an article in People's Daily. Excerpts:

The rapid rate of urbanization in China is conducive to the growth of the Chinese cultural industry, including the film industry. Cultural facilities such as movie theaters will be in greater demand with hundreds of millions of people moving to newly built cities and towns. Besides, the improved environment for copyright protection also guarantees the film industry's healthy development.

With the help of cultural restructuring and introduction of competition to the film industry, a smooth system for investment, financing and film production and distribution has been established.

But the gradual improvement of the exterior environment does not necessarily mean that the quality of domestic films has improved.

A careful look at last year's gratifying box office returns reveals that domestic films have not made as much inroad as they should have in the domestic market.

Inflated ticket prices are one of the major reasons why people are dissuaded from watching movies in cinemas. Films are no longer a source of entertainment for the general people because their average income level is low, which in fact runs counter to the historical trend and hinders the expansion of the film industry.

What is most depressing for the audience is that the prices of tickets of domestic films do not measure up to their quality. If this continues, domestic films will not only fail to attract Chinese audience, but also lose the battle against overseas movies at the box office.

Therefore, Chinese filmmakers must put all their energy to make good quality films at moderate prices and ensure the growth of the Chinese film industry.

(China Daily 01/31/2012 page9)

]]> 2012-01-31 08:01:56 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508346.htm The Year of the Dragon is full of the cultural flavor the whole country has been thinking and discussing about. China and its people have embarked on the road of socialist culture and prosperity while communicating with the outside world with an open mind, says an article in China Youth Daily. Excerpts:

The dragon is embedded in Chinese history and culture. Many of China's folk festivals are full of idioms and connotations of hope and blessings related to the dragon, or long. The long is present in every nook and cranny of Chinese society and influences almost every aspect of Chinese culture.

It is a symbol of the descendants of the Yellow Emperor, and the kinship in between. It has also been taken abroad by overseas Chinese and has become a classic symbol of Chinese culture around the world.

Spring Festival is not only the symbol of Chinese culture. It also represents China's cultural identity and Chinese cultural values such as family, love, happiness and close-knit families. The hundreds of millions of people who are seen at railway and bus stations and airports desperate to return home for a family reunion during Spring Festival prove Chinese people's strong attachment to family and social values.

The importance of family reunions during Spring Festival is more than just making and eating dumplings and wearing new clothes; it is about the value that Chinese people attach to traditional culture.

As long as we respect our cultural traditions and give full play to people's willingness to participate in the country's cultural construction and absorb creative elements from folk art, we can push forward our cultural vitality.  

(China Daily 01/31/2012 page9)

]]> 2012-01-31 08:01:56 http://www.chinadaily.com.cn/opinion/2012-01/31/content_14508762.htm

(China Daily 01/31/2012 page8)

]]> 2012-01-31 07:58:52 http://www.chinadaily.com.cn/opinion/2012-01/30/content_14507193.htm

]]> 2012-01-30 20:03:05 http://bbs.chinadaily.com.cn/thread-729458-1-1.html 2012-01-30 10:41:38 http://bbs.chinadaily.com.cn/thread-729522-1-1.html

]]> 2012-01-30 09:23:31 http://www.chinadaily.com.cn/opinion/2012-01/30/content_14502753.htm

The world economy in 2011 was not as rosy as most people expected at the beginning of the year. Will this year be better?

With the eurozone debt crisis hanging so heavily over the Davos forum, it is understandable why the World Bank cut its global growth forecast for 2012 from a June estimate of 3.6 percent to only 2.5 percent, the largest reduction in three years.

Global growth faces not only immediate uncertainties, such as the EU summit on Monday, which will hope to save Greece from becoming the first eurozone member in the 11-year history of the currency bloc to default.

The fact that many developed economies have a long way to go to reduce their debts as a proportion of gross domestic product is also casting a long shadow over any meaningful global recovery.

These are all good reasons to caution against premature optimism, but lower expectations are no excuse for postponing decisive action to fix the long-term problems the crisis has laid bare.

However, three years after the global financial crisis broke out in late 2008, emerging economies like China are already providing some light at the end of the tunnel.

Though the world's second largest economy has seemingly bid farewell to its decades of double-digit growth, it has made remarkable progress in shifting its economic emphasis from exports towards consumption.

As a percentage of GDP, China's trade surplus fell to an estimated 2.2 percent in 2011, compared with 3.1 percent in 2010 and a high of 7.5 percent in 2007.

The latest statistics from the Ministry of Commerce also indicate that the country's retail sales for the week-long Spring Festival holiday rose 16.2 percent year-on-year.

While China's rebalancing progress is still not fast enough, it is happening. And it is fairly reasonable to anticipate the Chinese economy will move in the right direction to further rebalance its growth model and serve as a key growth engine for the world economy.

In contrast, the near-term outlook for developed economies remains gloomy. Slow or even negative growth simply cannot alleviate the problems from ballooning debts in crisis-ridden European countries and the United States.

It is a pity that, at the start of 2012, the international community is still talking about a bailout with cheap money.

The US Federal Reserve Board recently vowed to keep its interest rate ultra low until late 2014, while the European Central Bank decided to flood lenders with nearly a half-trillion euros (nearly $650 billion) in cheap, three-year loans.

Cheap money can only buy some limited time for debt-laden countries to come up with a longer-term solution to their underlining economic woes. The sooner Western policymakers recognize this, the sooner they can embrace the painful but decisive actions needed to revamp their economies in line with the new global economic reality.

(China Daily 01/30/2012 page8)

]]> 2012-01-30 07:58:10 http://www.chinadaily.com.cn/opinion/2012-01/30/content_14502748.htm

The former house of Liang Sicheng (1901-1972) and Lin Huiyin (1904-1955), a famous couple of modern Chinese architects, in Dongcheng district of Beijing was demolished last week.

Had it not been for the efforts of volunteers and NGOs, the house would have been demolished in 2009.

The developer started nibbling at the rooms in the wings with authorization from the Dongcheng District Housing Authority in May 2010 and demolition proceeded on and off till December 2011, when the house was listed by the State Administration of Cultural Heritage as an "immovable cultural relic".

Even so, the house was still being dismantled one month later. Unbeknownst to the Beijing Municipal Administration of Cultural Heritage, which apparently had no idea until media reported the demolition at the weekend. The Dongcheng District Cultural Commission responded by claiming that the developer was merely conducting "maintainability demolition" on the house and it would be rebuilt.

But the rebuilding is artificial and superficial and shows no regard for history. According to the law on the protection of cultural relics, the developer should be fined 50,000-500,000 yuan ($7,937-79,370).

Cultural relics not only define Chinese cultural identity, but also provide spiritual nutrition for the modern world.

There is no excuse for the administrations of city planning and housing not to cooperate with cultural authorities to keep the cultural costs of urbanization to a minimum.

There are plenty of experiences and painful lessons in the developed countries for Chinese authorities to draw on. Urbanization should never be a deduction but an addition when it comes to a country's historical heritage. It is urgent that the law on protecting cultural relics is amended and strictly enforced to prevent similar acts in the future.

(China Daily 01/30/2012 page8)

]]> 2012-01-30 07:58:10 http://www.chinadaily.com.cn/opinion/2012-01/30/content_14502758.htm

Many micro-bloggers have complained that the red envelopes containing lucky money that they give to children are "bigger" this year than the red envelopes they gave last year. Some post-70s parents say they cannot continue to meet the expectations for more and more money as their year-end bonuses just "disappear" in a flash. Speaking of lucky money, do you have any unforgettable memories or funny stories? How much money have you given out this year? China Daily mobile news readers share their views with us.

Compared with the thousands of yuan given to children as lucky money, my wage is too low to satisfy everyone that I have to give to. The lucky money is "unlucky" for wage earners, because it has made the Spring Festival a burden rather than a celebration to us.

Lin Shuo, Beijing

The lucky money contains the deepest love from my parents, that's why I cherish and make good use of it. With the yearly bonus I have paid for such things as toys, stationery and trips. The money has given me not only joy but also a sense of financing. Facing graduation in July, I hope I can give my parents lucky money next year, so that they can also have the joy and good luck.

Taotao, Urumqi, Xinjiang Uygur autonomous region

When I was a child in the 1970s, I would accept the lucky money from my parents with deep gratitude and excitement. There was very little money then but it was enough to make me happy for many days. Today the children receive much more money, but they do not seem so excited by it.

Jenny, Hangzhou, Zhengjiang province

A traditional habit of the Spring Festival, giving lucky money to children has helped greatly in promoting the atmosphere of the holiday. When I was young my cousins often wished my grandmother Happy New Year to get the lucky money, it's a happy memory.

A reader from Tianjin

Having graduated this year, I will become a wage earner and say goodbye to lucky money. It is now my turn to show my love to those who have always supported me. I will give money to the older members of my family and books to the younger ones, both with good luck and best wishes.

Chen Duwen, Changsha, Hunan province

My lucky money was always grabbed by my parents for all sorts of reasons. So one year I decided to keep a 10-yuan($1.58) note, which was then a huge sum of money, by concealing it inside my pillow. I slept wonderfully for weeks on my own fortune, until my mom found it when she took the pillowcase off for washing.

HY, Wuxi, Jiangsu province

I am not married, but I have to pay lucky money to my nephews and nieces, who are already attending primary school. My sister wanted me to send her kids gifts instead of money, "so that they have a more clear view of new year greetings".

Duanduan, Tianjin

My father once gave me 100 notes, worth 10 yuan in all, as lucky money for the year. I still have it today, as I have kept it as a memento, because my father passed away 20 years ago. It always reminds me: Cherish everybody that you care for.

Sandy, Shenzhen, Guangdong province

Every year I am always under pressure coming home because I'm not married, which means all the family members will try to persuade me to find a suitable partner. But on one point I am lucky: they give me lucky money because I am still considered a child. I'm glad for that "discrimination".

Fulu, Changzhou, Jiangsu province

My grandparents always gave me a huge sum of lucky money every year, but I could only spend a few days with them every year. Now with grandma gone my grandpa is a lonely old man. I hope he will keep healthy, so that one day I can give him lucky money out of my wage.

Zhang Zhixuan, Nanjing, Jiangsu province

I am 24 years old now, but the lucky money in my childhood seems something of yesterday. When I slept at the end of the year, mom always put some money in our wallets for a lucky new year, which I would spend on toys after waking up. The money was not only brand-new, it was also warm.

Rain, Mianyang, Sichuan

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/30/2012 page9)

]]> 2012-01-30 07:58:10 http://www.chinadaily.com.cn/opinion/2012-01/30/content_14502743.htm

To attack and censure socialist system is the true intention of distorted portrayal of the country's human rights environment

On the eve of the Chinese New Year, Human Rights Watch released its Global Annual Report 2012. As of old, the organization found fault with China's human rights situation. Full of subjective assumptions and cliches, the report concentrated its firepower on political issues in China.

The Chinese government's endeavor to maintain social stability, protect national security, and even its voting behavior as a permanent member of the UN Security Council are all targeted in the report.

Such a report is far from a human rights report, fundamentally it is a political report released in the name of human rights.

The most notable facet reflecting the report's politicized human rights logic lies in its conclusion that "the human rights environment in China is deteriorating". A country's human rights environment concerns its political, economic, cultural and social development issues, so it is far beyond the competency of a non-governmental organization to judge a country's human rights environment.

Significantly, Human Rights Watch is willing to ignore its role as an NGO, and has openly advocated Western countries put pressure on China.

Brad Adams, executive director of Human Rights Watch's Asia Division, said on Jan 23 that China needs the Western market, which means that China is unlikely to act against the West economically, especially if Western countries stand united. Europe should not be afraid of China, and the international community, especially Europe, should increase pressure on China to improve its human rights conditions, he said.

Human Rights Watch in essence has positioned itself as a political organization, trying to take the initiative to conspire with some Western governments to achieve their political aims. To attack and censure China's political situation is the true intention of the report.

By claiming China's human rights situation is "deteriorating", and then trying to collect evidence of the Chinese government's "human rights violations" from various rumors, speculation and even fabrications, they want to distort China's international image.

In this way, human rights have nothing to do with human values and dignity, and whether human rights in China are making progress and whether the Chinese government respects human rights is unimportant. The only thing that is important is that China should be criticized politically. China cannot choose the development path suitable to its own national conditions and cannot even exercise the rights of a sovereign state to safeguard national security and social stability.

Under such politicized human rights thinking, Human Rights Watch not only attempts to put itself in the position of a moral judge, it also places itself above a sovereign state, demanding that the Chinese government govern in accordance with its will.

In fact, alongside its economic achievements, China's human rights situation has also progressed. China has embarked on a human rights development path compatible with its own national conditions and respecting and protecting human rights has become an important principle in managing State affairs.

The politicized human rights espoused by Human Rights Watch and some Western governments features two political premises: the first is the consistent bias over China's human rights situation and social system; the second is the attempt to create a new political conundrum for the Chinese government by forejudging China's "various violations of human rights".

The root of this prejudice is the West's distorted perception of the socialist system, which deems China a threat and challenger to the West. Some Western countries still harbor a deep-rooted Cold War mentality and hegemonic consciousness and they seek to distort China's human rights record for their own purposes.

After the Cold War, the West developed a sense of superiority in their political system and a prejudice against any others that were different. Based on their institutional arrogance, these Western countries believe that their political system is the only universal system.

Because of this, any kind of non-Western political system is quickly labeled "non-democratic", "authoritarian", and even a "rogue state".

In this sense, the report attempts to use human rights as a political weapon to promote China's collapse from within.

In recent years, the West has become increasingly anxious over China's development. China's sustained economic growth has led to the rise of its international status and influence and the China model is attractive to other developing countries. Meanwhile, the arrogant Western countries are caught in serious financial crises, with their model of development and self-interest being widely criticized and questioned.

The West's fear, arrogance and anxiety mean it continually seeks to distort China's image. Dominated by such a mentality, the West will never acknowledge that the human rights situation in China has been continually improving.

The people in the West that point accusatory fingers at the human rights situation in China should face up to the reality that if the 1.3 billion Chinese people did not have political democracy, freedom of thought and growing human rights protection, how could they create an unprecedented economic miracle within just 30 years?

The author is a Beijing-based scholar of international relations.

(China Daily 01/30/2012 page8)

]]> 2012-01-30 07:58:10 http://www.chinadaily.com.cn/opinion/2012-01/30/content_14502738.htm

It is not uncommon for some Western governments and the so-called Tibetan government-in-exile to play up and distort incidents, such as the one last week between the law enforcement forces and local residents in Ganzi Tibetan autonomous prefecture, Sichuan province.

On Monday and Tuesday, police stations in two counties of the autonomous prefecture were attacked by mobs, prompting the police to defend themselves.

According to Xinhua News Agency, one of the clashes involved a mob of more than 100 people, who had gathered following rumors that three monks intended to commit suicide by self-immolation there.

They smashed two police vehicles, two fire trucks and stormed into nearby shops and a bank.

The clashes caused at least one death and others, including policemen, were injured.

As usual, Western government officials and the self-proclaimed Tibetan government-in-exile spared no effort in taking the opportunity to criticize the Chinese central government.

The London-based Free Tibet advocacy group claimed that police opened fire on Tibetans peacefully protesting against religious repression in the southwestern province of Sichuan, killing at least one and injuring more than 30.

This was refuted by the Chinese Foreign Ministry, which said the true cause of the clash was a mob intent on storming stores and the police station.

"Overseas forces promoting 'independence for Tibet' have always fabricated rumors and distorted the truth to discredit the Chinese government with issues involving Tibet," said Foreign Ministry spokesman Hong Lei.

The so-called Tibetan government-in-exile, led by the Dalai Lama, who fled Tibet in 1959 following a failed separatist attempt, was quick to seize the opportunity to self-aggrandize themselves and beg support from their Western supporters. That may be the reason why the Dalai Lama clique is always so eager to stir up trouble in the region.

Globalization has also had an influence on the Tibetan-inhabited regions, providing more opportunities for the self-titled Tibetan government-in-exile overseas to promote itself to people within China.

Unfortunately any political collusion between domestic and foreign forces tends to hide their real motives with religion, masking the destructive power of these extreme incidents and their true instigators.

It is always easier to destroy than to maintain order and build. In today's world, a handful of extremists have the ability to cause havoc to a region or even a country, never mind the Dalai Lama clique, which cloaks its real agenda behind religion and which is financed and supported by some Western governments and media with their own agenda against China. It is obvious that they are capable of causing trouble now and then in the Tibetan-inhabited regions.

However, the Dalai Lama clique will never win the hearts of Tibetans in this way, as it has greatly damaged the development of the Tibetan-inhabited regions, and harmed the interests of Tibetan people.

Peace and development are the common desire of most Tibetan people, while political assertions such as "independence" and "high-degree of autonomy" have no solid social foundation at all. What Tibetans want most is a stable society and improved livelihoods. The Chinese central government has made huge investments into the Tibetan-inhabited areas, which has greatly raised the standard of living and protected the traditional culture of Tibet. It is easy to see that petitions for "independence" and self-immolations are actually ideas imported from overseas.

In the past three decades, to protect and maintain the cultural relics of the Tibet autonomous region alone, the central government has invested 1.3 billion yuan ($210 million), including the renovation of the Potala Palace in Lhasa.

The Dalai Lama is abusing his religious status in the Tibetan-inhabited regions. He and his supporters are kidnapping the broad interests of all the people in the Tibetan-inhabited regions to satisfy their own interests - the interests of the clique of exiled Tibetans. Such a selfish political motive does not have the support of people in the Tibetan-inhabited regions and is doomed to failure.

China Daily

(China Daily 01/30/2012 page8)

]]> 2012-01-30 07:58:10 http://www.chinadaily.com.cn/opinion/2012-01/30/content_14502733.htm

Despite being repeatedly proved wrong, proponents of the "China collapse" theory have been using it to win their share of the market. A recent article by Gordon G. Chang in Foreign Policy, a bimonthly US magazine, is one such example.

Even though there is nothing truly "revolutionary" in Chang's arguments and predictions, some Western politicians, media outlets and scholars are attaching extraordinary importance to him. In his book, The Coming Collapse of China, Chang predicted that China would "collapse" in 2006. When he saw China was not only still there, but also developing at an accelerated rate, he modified his "prophecy" slightly, giving the country a few more years to live - until 2011.

This is 2012, and I have just left China (Beijing, to be precise) after spending a wonderful few days there. The country looked far from collapsing. In fact, it is thousands of miles away from most Western capitals with their angry, dissatisfied crowds frustrated by social malaise. Obviously realizing that China has once again defied his sour predictions, Chang apologized to his readers and deferred the doomsday scenario to 2012.

Here are some arguments to show how unoriginal Chang's offerings are, at least from the point of view of the Western conservative mainstream: "The global boom of the last two decades ended in 2008, China, which during its reform era had one of the best demographic profiles of any nation, will soon have one of the worst. The Chinese workforce will level off in about 2013, perhaps 2014 a trend that will eventually make the country's factories uncompetitive" Above all, Chang argues: "China's 'sweet spot' is over because, in recent years, the conditions that created it have either disappeared or will soon."

What is fascinating is that Chang is actually redefining what is conservative and what is progressive to suit his political and ideological goals. He calls pro-business reforms "progressive" and sees the recent reforms in China, which are expected to benefit people, as most negative.

What Chang and his ilk find most threatening is the looming re-establishment of "barriers to international commerce". To make it clear, the welfare of Chinese people does not matter one bit to them. What is important for them is the access of Western companies to the Chinese markets. Eminent American linguist, cognitive scientist and activist Noam Chomsky calls it "profit over people".

Chang is forgetting that we are living in the 21st century, which is marked by the "rebellion" of countries previously bullied by the West. These countries are now successfully pursuing their own political and economic models - Venezuela, Bolivia, Argentina, Ecuador and others. In Europe and the United States, the majority of the people are disgusted with pro-market fundamentalism that has kidnapped their nations, but they cannot do much to change the system. They are searching for alternatives, looking at Latin America and China, but also at homegrown options.

If anything is collapsing, it is the group of nations governed by market fundamentalism.

China and Latin America are, thank you, just fine: both economically and psychologically. They are growing at astonishing rates in an era of sluggish global growth not to satisfy some business entities but to improve the lives of their people. For them, economy and trade are the means, not the end.

This spirit of unity, solidarity and enthusiasm is exactly what makes China successful and unstoppable. It is also what makes its enemies desperate and confrontational in anticipation of defeat.

There is no doubt that the Communist Party of China and the Chinese government will thrive in and after 2012. But China and its people should be aware of and vigilant against the dangers they face from outside: reports like those prepared by right-wingers are not just miscalculated predictions. They are well-planned targeted attacks against the Chinese system, an attempt to destabilize the country, to confuse its people, to break their zeal of building a prosperous society.

It goes without saying that the majority of Chinese people want social justice. They want to build an egalitarian and prosperous country, for themselves and for their children. Reforms in China are a logical response of the government to the desires of the people. Such a process is called democracy, which actually translates into "the rule of the people", not "the Western-style political system".

As long as China is united in building a better and just society, it will be around not only at the end of this year, but also for centuries and millenniums to come. In the future, Chang and his followers and other proponents of China's collapse will make and modify their well-financed but futile predictions.

The author is an American novelist, documentary filmmaker and investigative journalist.

(China Daily 01/30/2012 page9)

]]> 2012-01-30 07:58:10 http://www.chinadaily.com.cn/opinion/2012-01/30/content_14502728.htm

Beyond the shadow of a doubt, the reform of labor markets is ultimately the most critical part of the reform process, in the eurozone and across the European Union(EU). Only successful measures in this arena can bring about a lasting, future-oriented turnaround for Europe. The European heads of state have a much-needed opportunity to focus their Jan 30 summit meeting on strategies to reduce unemployment.

While the goal is clear - growth must be stimulated everywhere and unemployment must be brought down - we must resist the temptation to believe that there is any one-size-fits-all solution. Far from it. Each country can, and each country must, develop its own strategy for labor market reform. Each country, not Brussels or anybody else, is thus in charge of its own destiny. That is so for a very simple reason. Labor market conditions, requirements, options and challenges differ from one country to the next, often significantly.

Some countries have a very high share of services in their national economy, and thus depend greatly on domestic demand. Others rely heavily on exports and must prepare themselves from possible slowdowns on that front. Then there are also those who still have to evolve from an over-reliance on agrarian structures. Yet again others must focus especially on reducing dramatic levels of youth unemployment.

But even countries where unemployment is already quite low, such as Germany, have to contend with serious challenges. A shrinking workforce and pressures on social security systems suggest incentives to postpone the retirement age and doing much more to integrate women into the labor force.

The latter is an area where France and the Scandinavian countries have provided impressive examples of how to get it right.

And while there is no role for the European Commission in Brussels to prescribe any specific, possibly even uniform path of reform, there is a useful role the Commission can play. It should monitor and incentivize countries' progress on labor market liberalization and the creation of new jobs.

Incentivizing positive change would be a truly constructive use of the Commission's monitoring capabilities. The current mindset - obsessing about countries' budgetary performance and imposing penalties on countries that already find themselves in grave difficulties fiscally - is bound to be counter-productive.

Specifically, the European Commission can strengthen labor mobility across Europe by fostering collaborations between the national labor offices to exchange information about job openings and interested workers and create the very much needed European online job market. A much stronger labor mobility of European workers is key to creating additional growth by reducing the waste of human resources. Similarly, we Europeans may speak a total of 23 official languages within the EU, but that should not keep us from doing much more to recognize professional training certificates in a far more open-minded fashion across borders.

Here, Germany may become an early center of attention and reform. Because of sustained economic growth, the German labor market is moving toward full employment. With the gradual decline in the country's total population, the odds are that there will be more jobs to fill in Germany in the future than there are new labor market entrants each year. At the same time, the Germans have been on the forefront of those concerns about new employees having the "proper" training certificates.

I cannot imagine that, in a labor market of 500 million people, with many young people without a job, German employers could not find good personnel in other countries. In the age of social media and Skype, it is not too difficult to screen for talent even over long distances. Over the medium term, that is a far more productive HR strategy for large firms than the practice they are now beginning to engage in, trying to use headhunters to poach young professionals, who are only just into their first job, from one another. The latter is truly a zero sum game.

Being more open-minded and cross-border oriented would also be a powerful stepping stone toward the eventual creation of more dynamic economies in migrants' home countries. Take the example of Turkey. While the country is not even a member of the EU and the language barrier is certainly profound, it has become a very attractive manufacturing economy. A key part of the new-found dynamism rests on the skills transfer of Turkish workers who used to work in Germany before returning home and starting up small businesses. It should go without saying that the 27 members of the EU could do for one another what Germany and Turkey have done together over the past several decades, without any government planning.

An honest accounting especially of northern Europe's needs and responsibilities would also lead us to think very differently about Northern Africa, especially university graduates from Tunisia or Egypt. We talk a lot about the rapid aging in Europe, meanwhile the average age in Egypt is 24 years and 29.7 in Tunisia. If the Turkish example has demonstrated one thing, it is that both sides can benefit, even in unexpected ways, from the exchange process. This example teaches us that we must open our eyes to the potential. That strategies to meet our labor market needs also align quite neatly with the EU's foreign policy strategy certainly does not hurt.

The author is director, IZA, Institute for the Study of Labor, Bonn, Germany

(China Daily 01/30/2012 page9)

]]> 2012-01-30 07:58:10 http://www.chinadaily.com.cn/opinion/2012-01/29/content_14498822.htm The New York-based NGO Human Rights Watch issued its World Report 2012 on Jan 22, observing China's human rights conditions from angles of defendant rights, judicial reform, freedom of speech and religious freedom. The report seriously lacks in objectivity and impartiality. Its conclusion intentionally distorts China's human rights conditions. Its observation of China's judicial reform is extremely inconsistent with facts and one-sided.

The report says the public security departments dominate the criminal justice system and rely excessively on the defendant's confession. The weak courts and seriously limited rights of defense mean forced confession is still universal and judicial partiality is common. This is serious distortion.

It is known that China's criminal justice system is not controlled by public security departments, but consists of investigation and procuratorial organs as well as people's courts. China's Criminal Procedural Law clearly stipulates the labor distribution among the three parties. They work with and check against one another.

The proposal for prosecution by public security departments must be examined by procuratorial organs before it is recommended to the court to initiate a public prosecution. The public prosecution of the investigating organs must go through the court's open and fair trial, during which the defendant's opinions and all kinds of testimony must be verified, before becoming part of the court's decision.

In this process, it is common for the procuratorial organs to require public security departments to file a case (or not), the procuratorial organs decide to prosecute (or not), and the people's courts declare the accused guilty (or not). These possibilities all restrict the power of public security departments.

In judicial practices, public security departments must follow or respond to the procuratorial organs' procuratorial proposals and supervision of filing a criminal case. According to the Supreme People's Procuratorate's work report to the National People's Congress in 2011, all procuratorial organs proposed 33,863 times and cases to correct the public security departments' illegal practices of investigation.

The number of cases in which the procuratorial organs do not ratify an arrest, do not prosecute, withdraw a lawsuit, and the people's courts decide the accused innocent, is increasing proportionally year by year. All of these actions are restricting the public security departments' power effectively.

Besides, according to the seventh article of the Regulation on Exclusion of Illegal Evidence issued in June 2011, if the courts are doubtful of the legitimacy of the defendants' confessions obtained before trial, the courts can insist that the questioners take the stand in courts. All these examples prove that China's criminal justice system is not controlled by the public security departments. It is an integral system made up of the three parties, each with clear duties, with the people's courts' rights of sentencing and measurement of penalty as the core.

Excessive dependence on defendants' confessions is decreasing remarkably. The role and rights of defense counsels are increasing steadily. Forced confession is strictly forbidden. The regulations on the exclusion of illegal evidence and on evidence in death penalty cases issued in June 2010, as well as the draft amendment to the Criminal Procedural Law released in Aug 2011, all reflect important progress in the protection of human rights. But the Human Rights Watch report fabricates and speculates on "an article of secret detention" of the draft amendment, which no longer exists.

In fact the draft amendment issued in August 2011 includes an article about notice of detention. That is big progress compared with related articles of the law in 1996. According to the 84th article of the draft amendment, the public security departments must present detention warrants when detaining anyone, who should be sent to the detention center within 24 hours after being detained. The detained person's family should be notified about the detention reason and the detention center location within 24 hours after detention, except for serious crimes such as those endangering national security, terrorist crimes. There are exceptions, if it is impossible to notify, or if the notice may obstruct investigation.

The 64th article of the Criminal Procedural Law of 1996 only stipulated that the public security departments must present detention warrants while detaining anyone. The detained person's family or work units should be noticed about the detention reason and detention center within 24 hours after detention, except if it is impossible to notify, or the notice may obstruct investigation. This amendment of the 84th article is just to strengthen the public security departments' obligation to notify and protect the suspects' families' rights to know.

The report of Human Rights Watch does not mention progress in the draft amendment at all and only fabricates non-existent misleading articles.

In the draft amendment, forced confession is prevented; exclusion of illegal evidence and its procedure are added, standard of proof of criminal procedure is clarified; the definition of "social danger" is clarified; the obligation of persons obtaining guarantor pending trial is regulated to lower detention rate; designated monitored residence can be converted to prison term; technical investigation is authorized and regulated; the recording system in inquest is strengthened, investigation defense system is formed and clarified, the number of remand for retrial is limited, the criminal reconciliation procedure is clarified; the system of sealing up criminal record of juvenile crimes and deferred prosecution is regulated; mental illness treatment procedure is regulated, and inspection and supervision of implementation are strengthened.

These active changes reflect the main progress in China's judicial reform in 2011. Compared with the former one in 1996, more than 60 articles are added and more than 90 articles are amended in the draft amendment.

Remarkable breakthroughs in judicial reform have been made in 2011 in measurement of penalty, State compensation, mediation, trial management and implementation procedure. It is a pity the report of Human Rights Watch turned a blind eye to all these positive steps and Chinese authorities' effort to promote judicial reforms, and only focuses on some non-existent articles.

The author is with the Law School of Nankai University.

]]> 2012-01-29 09:20:32 http://www.chinadaily.com.cn/opinion/2012-01/28/content_14498549.htm Human Rights Watch, a New York-based NGO, issued its Global Annual Report of 2012, criticizing some specific cases of human rights conditions in China. It made some unfounded accusations against Chinese economic policies, including the "comfortable housing project" in the Tibet autonomous region. The project is widely welcomed by local residents, but Human Rights Watch distorted facts and singled it out as a human rights violation.

The project, which began in 2006, is aimed at improving the living conditions for local farmers and herdsmen and helping them settle down by providing affordable housing to 80 percent of them within five years.

We started researching the development issue of Tibet from the 1990s and mainly focused on the economic growth of the region and quality of life improvement of Tibetan farmers and nomads. We chose four countryside communities in Lhasa and Lhoka prefecture in the 1990s and surveyed them for more than 20 years. We were also authorized by local authorities to do field work in many other regions of Tibet. We analyzed the conclusion of the Human Rights Watch report and the "comfortable housing project" on the basis of our research findings and personal experiences.

First, the report mentioned that the "Chinese government removed 80 percent of the Tibetan population, including all herdsmen and nomads, to other places", which goes against not only common sense, but also basic facts.

Statistics indicate 1.85 million herdsmen and nomads - 61 percent of the total population - had settled down by 2011. A basic fact is that most of these people still live in places where their ancestors lived. They did not move or relocate. For example, the Chundui village, made up of 102 families, finished its housing project in 2010. More than 90 families' houses were rebuilt on the site. The other families chose new sites in the village for their new houses for different reasons, but all made the decision themselves.

In this project, the government also moved some farmers and nomads to other places. Most of the people had lived in Kaschin-Beck disease- and Goiter-prone regions. Statistics show that about 4,000 families living in the Kaschin-Beck disease-prone region had moved by 2010. The provincial government of Sichuan has already met their requirements and moved them to places far from disease-prone areas.

According to our research, in the past six years the number of farmers and nomads who have been relocated is about 150,000, less than 5 percent of the whole population. It is groundless for the Human Rights Watch report to say that 80 percent of the people were displaced.

In the beginning of the "comfortable housing project", the authorities assigned local architects in Tibet to design dozens of architecture patterns according to local geographic characteristics and ethnic styles for farmers and nomads to choose. Once the project started in 2006, it was warmly welcomed by local Tibetan people. We talked with more than 1,000 families. None of them was against the project.

There are some international organizations, academic institutions and scholars along with some NGOs that are always pointing fingers at the housing project in Tibet. They assume Tibet maintained the most complete nomadic production and lifestyle, which is conducive to protecting the delicate prairie ecological system.

But Tibetan nomads only travel long distances in the summer when the plateau is covered with exuberant grasses. In the long winter season, they only settle in the winter pastures in low-altitude regions. The government has fully noticed this while providing nomads with houses. About 30,000 nomad families had received comfortable and cozy houses as of 2010, most of whom live along traffic lines close to winter pastures.

Before the democratic reform in Tibet, the average lifespan of the local people was barely 35, and the mortality rate of newborn babies was as high as 30 percent. The government builds warm and comfortable houses in the summer pastures close to traffic lines. Children can go to school. The sick can be treated. If we only want to preserve their traditional lifestyle but ignore the hardships local people experience in their daily lives, we deprive them the right to development and a higher standard of living.

We often see some foreign experts in human rights discuss the housing projects, saying that the nomad's life lacks basic facilities and is quite inconvenient. Some say local residents don't have necessary means of livelihood after moving into new houses, and they owe a lot of money to relatives and friends so their lives become quite difficult. Our field research in the villages indicates that the government always finishes all supporting infrastructure facilities of water, electricity and roads after new houses are built.

Meanwhile, we also see many young people finding jobs in non-agricultural fields in communities with convenient traffic conditions. They do business in transportation services and catering industries. Before the changes, no one in their families left the farmland and pastures. When the project is carried out, the cost is actually paid by the government, the residents and bank loans. As far as we know, none of the families fell into poverty as a result of borrowing from the bank because the government often assists residents to help them pay loans.

To guarantee the residents' quality of life and health safety, the government helps Tibetan nomads improve their living conditions and respects their personal choices. It is a basic service that the government should provide.

Why does a New York-based NGO reach a totally different conclusion? If it's not for a lack of reliable research, we think it must be because they have ulterior motives.

The authors are researchers with the Institute of Social Economy of China Tibetology Research Center.

China Daily

(China Daily 01/28/2012 page4)

]]> 2012-01-28 07:20:21 http://www.chinadaily.com.cn/opinion/2012-01/27/content_14498540.htm NGO's publication catered to facilitate US interests; falls short on 'scientific' analysis

On Jan 22, Lunar New Year's Eve, Human Rights Watch, a New York-based non-governmental organization (NGO), issued its Global Annual Report 2012 on human rights conditions worldwide. The report criticized the human rights conditions of more than 90 countries and regions, including China.

At first glance, Human Rights Watch appears to be keen on the protection of international human rights. But it actually carries out its work with double standards and bias. Its observations lack political neutrality and its research methods are questionable. The organization's employment of unqualified workers has also hurt the credibility of its report. Human Rights Watch should reflect inward before passing on judgment to others.

The media and international observers have long criticized Human Rights Watch for passing judgment of human rights conditions of a country or region through tinted lens. It turns a blind eye to human rights issues in some countries while criticizing others vehemently. The Sunday Times quoted a human rights insider in the United States as saying that the organization caters its reports to the US government, which greatly affects its objectivity.

The US government has been increasing its use of so-called values diplomacy, playing the human rights card frequently in Sino-US relations. In this regard, Human Rights Watch's interests fall in line with the US government's diplomatic strategy, despite its status as an NGO.

This year's report said that China's human rights conditions are worsening. It also repeated cliches on Hong Kong's declining degree of autonomy.

After the election of the Third Legislative Council of the Hong Kong Special Administrative Region (SAR) - the most democratic one in Hong Kong's history - kicked off in September 2004, Human Rights Watch issued a notorious report on human rights conditions in Hong Kong, criticizing the central government's resolution in implementing the "one country, two systems" policy. Human Rights Watch's most recent report distorted facts again, provoking dissent between Hong Kong residents and the central government as well as the government of the Hong Kong SAR.

Human Rights Watch's hiring of disqualified people also taints its reputation.

Marc Garlasco, an expert famous for his investigation of war crimes in the Middle East, worked for the US Pentagon for seven years as a senior analyst of Iraqi intelligence. He admitted in interviews that he had been involved in at least 50 air attacks, all of which missed its targets and killed hundreds of civilians instead. An air strike targeting Ali Hassan al-Majid, also known as Chemical Ali for his use of chemical weapons on Iraqi Kurds, on April 5, 2003 in Basra missed its target and killed 17 civilians.

Garlasco, who joined Human Rights Watch in 2004, also avidly collected items with Nazi symbols. He is active on an Internet forum, nicknamed Flakk 88, and a photo was posted on the Net of him wearing a shirt with a Nazi Iron Cross.

While working as a magazine editor in 1970s, Joe Stork, senior official of the Middle East Division of Human Rights Watch, wrote an editorial praising the Munich Olympic Massacre in 1972, which claimed the lives of 11 Israeli sportsmen and coaches.

Kenneth Roth, executive director of Human Rights Watch, defended Stork, saying that Stork was only one of the magazine's seven editors at the time. Roth added that the editorial was written more than 30 years ago and Stork became a strong opponent against Saddam Hussein later. Such a poor explanation did not convince anyone. Moreover, it is also beyond comprehension that the organization recruited another person who worked for an anti-Semitic publication.

Human Rights Watch's annual report is always greeted with criticism by the international community also because its research methodologies, especially the reliability of its information sources, are not credible.

For example, an Israeli agency analyzing and evaluating NGOs on Jan 9 strongly questioned the credibility of Human Rights Watch's report. The agency reported that Human Rights Watch lacks a rigorous research methodology and often bases its report on unverified and unreliable sources. The NGO consistently quotes from anonymous "witness", making it impossible to verify its information. The majority of so-called witnesses are not interviewed face-to-face by people with professional training. Human Rights Watch even quotes information of dubious quality from the Internet.

In the China portion of its report, Human Rights Watch used expressions such as "estimate", "possibly", and "probably". It criticized China's judiciary system, religious institutions, regional autonomy by ethnic groups, family planning policy as well as foreign and economic policies.

Human Rights Watch's report falls short of objective, scientific analysis of China's national conditions, laws and policies.

The unscientific and politicized nature of the report makes it nothing but a political tool born out of a Cold War mentality. After the report was released, Brad Adams, executive director of Human Rights Watch's Asia Division, said on Jan 23 that China needs the Western market, which means that China is unlikely to act against the West economically, especially if Western countries stand united. Europe should not be afraid of China, and the international community, especially Europe, should increase pressure on China to improve its human rights conditions, he said.

The intent of Human Rights Watch is clear. In my opinion, Human Rights Watch should first re-evaluate its approach to promoting human rights and seek to improve its credibility.

The author is an associate researcher with the Institute of International Law at the Chinese Academy of Social Sciences.

(China Daily 01/27/2012 page4)

]]> 2012-01-27 07:27:57 http://www.chinadaily.com.cn/opinion/2012-01/26/content_14498535.htm Govt striving to build harmonious and just society to ensure that all citizens have the right to a dignified life

Western countries acknowledge that in the past 30 years China has made great achievements in its development and great contributions to the peace and development of the world. But they should also accept that these achievements will not be to everyone's liking, as it is difficult to move forward at such a rapid pace with so many people without stepping on a few toes along the way.

The Chinese authorities view human rights in a different way from Western countries. While Western countries are only concerned about a handful of so-called dissidents, the Chinese government is responsible for the well-being of 1.3 billion people, for whom it is doing its very best to ensure they can all live a happy and satisfactory life. This is a difficult goal to attain for any country, including Western countries, which have much smaller populations than China.

It is natural that out of 1.3 billion people, there will be a few who are unsatisfied with the government or the society in which they live. The important thing is whether most Chinese citizens feel their lives are improving and that the country and society are making progress by strengthening democracy and the rule of law.

To rapidly modernize the country and lift hundreds of millions of people out of poverty in such a huge country as China is an unprecedented task. For the Chinese government, its primary goal is to ensure that the economy continues to grow so that all citizens can shake off poverty and live a better life. Other goals come secondary to this. In the process, it is impossible to satisfy and attend to the interests of everyone. The very small number of people who are critical of the country's achievements should think of their compatriots for whom such a goal is now within reach.

The right to subsistence is the most important of all human rights, without which other rights are out of the question. Before the founding of New China in 1949, many people lacked adequate food and clothing and many were homeless. During this period, even though people's basic rights to food and shelter couldn't be guaranteed, and many starved or became ill, Western countries remained silent and offered no help.

Western countries loudly proclaimed human rights as an issue only after Chinese people began to have a better life as a result of the reform and opening-up. The accusations only suit their own purpose. If they really care about human rights, they should put their own houses in order and try to respond to the consequences of their debts, which are hitting their poorest citizens the hardest.

Although China has basically solved the problem of food and clothing, its huge population and relative per-capita paucity of resources mean there is still work to be done to achieve a well-off society in an all-round way.

Meanwhile, Chinese citizens do not seek to change the values of other countries, so other countries should not try to impose their values on China. The Chinese public often asks why China should cooperate with Western countries when they interfere with China's internal affairs, especially as China's relations with other countries are based on mutual respect, equality and non-interference in internal affairs. China is not afraid of discussing human rights issues, but the West should put aside its ideological prejudices and refrain from interfering in China's internal affairs.

The author is a Beijing-based scholar of international relations.

China Daily

(China Daily 01/26/2012 page4)

]]> 2012-01-26 07:53:58 http://www.chinadaily.com.cn/opinion/2012-01/30/content_14503180.htm

(China Daily 01/30/2012 page8)

]]> 2012-01-30 07:55:12 http://bbs.chinadaily.com.cn/thread-729503-1-1.html

]]> 2012-01-29 20:34:13 http://www.chinadaily.com.cn/opinion/project/2012-01/29/content_14500449.htm

NEW YORK – In mid-December, while trying to understand what was happening in Russia, I checked Twitter and found a tweet that somehow signified everything. It was from a young woman, and it said, in Russian: “Gotta sleep! Tomorrow I go to [face] peeling, then to meeting, and then to shopping.” All three words – peeling, meeting, and shopping – were in fact the English words, rendered in Cyrillic.

What this reveals is that the Russian protests – called “mitings” – are no longer just for old people, radical extremists, or jobless, unskilled, feral youth. They are for sociable people who have time and money not just for politics, but also for shopping and, yes, even cosmetic procedures.

That is a big change from just a few years ago. My Russian friends – many of them computer programmers, but also some shoppers and business executives – routinely dismissed politics as the province of the naive or the corrupt. Many of the older ones chose careers in science (and then software), because it was the only kind of desk job you could get where politics mostly did not matter (and where Jews were allowed). These people avoided politics on principle, but also because they were afraid of losing their state jobs, or of disappearing altogether.

The younger ones were not afraid; they were simply not interested in a spectator sport that seemed irrelevant to their lives. Of course, no one could affect the outcome of a football match, either, but at least it was fun to watch – and the rules were clear. In Russian politics, as the old joke has it, the outcome is fixed in advance, but the rules are unpredictable.

So, what changed? Everyone points to Facebook and its Russian analogue, V kontakte. And they do matter. But the point is not just organizing a “miting.” Protests have been organized before – in 1917, for example. The exciting difference is in people’s minds, not just in their tools.

I once wrote that “every time a user gets information, it reinforces a little part of the brain that says: ‘It’s good to know things. It’s my right to have information, whether it’s about train schedules, movie stars, or the activities of the politicians who make decisions that affect my life.’”

In the same way, every time someone posts on Facebook, they feel empowered to speak as well as to read. One of the slogans of the protests is, “We are not cattle.” On Facebook, people are not cattle; they can comment and like things, and their votes are counted. In the old days, the state ran everything. It even picked the public’s heroes: cosmonauts such as Yuri Gagarin, child hero/martyrs like Pavlik Morozov, who allegedly denounced his traitorous father and was murdered by his family in 1932, and Alexei Stakhanov, who double- or even triple-fulfilled his production targets (depending on the version of the story). Actors succeeded or failed not on the basis of popularity, but on the state’s direction; imagine a world with only one movie studio deciding which stars to promote. 

Now, the kids are not afraid and they pick their own heroes. Yes, they have seen oil baron Mikhail Khodorkovsky imprisoned on questionable charges, and inconvenient journalists beaten or killed. But they have also seen their friends posting on Facebook with impunity, and can see their own comments there. They cannot imagine disappearing without a trace, as many of their ancestors did under the old regime, when it was dangerous even to mention those who were gone.

Indeed, they are also not worried about losing their jobs. By the standards of the protesters in the Middle East, for example, they are well off. Russia does not have the same demographic crisis – a large cohort of unemployed youth – that has catalyzed change in the Arab world. (Indeed, its demographic problem is just the opposite: not enough young people.) Today’s Russian crisis is not economic, but political.

But what does this all mean? How much more will things change, and how persistent will the changes be?

It is fairly clear that Vladimir Putin will be re-elected to the presidency in March; the votes will be counted properly, even though some may argue that the slate of candidates is unduly restricted. What is not clear is what will happen after that.

Today’s protesters do not want a traditional revolution. They are mostly educated enough about the past to fear blood in the streets. They want Putin gone, not punished (mostly); they realize that it is the system that produced Putin, who then reinforced the system. They want to reverse that cycle, putting an end to corruption, official impunity, and being treated like cattle.

Unfortunately, however, there is no obvious alternative to Putin. In the most benign scenario, Putin himself would evolve. After all, Mikhail Gorbachev, the last Soviet president, managed to change the system that produced him (though perhaps he did not change it enough).

If Putin and his team were to start changing the system – genuinely fighting corruption, and perhaps releasing Khodorkovsky – the response would be positive. But that may be as much of a dream as Stakhanov’s legendary feats.

Esther Dyson, CEO of EDventure Holdings, is an active investor in a variety of start-ups around the world. Her interests include information technology, health care, private aviation, and space travel.

www.project-syndicate.org

NEW YORK – We know quite a bit about Iran’s nuclear program, and what we know is not encouraging. Iran is reported to be enriching uranium at two sites – some of it to levels of 20%, far beyond what is required for civilian purposes. The International Atomic Energy Agency also reports that Iran is carrying out research to develop designs for nuclear warheads. In short, Iranian officials’ claims that their nuclear program is aimed solely at power generation or medical research lacks all plausibility.

Yet there is still much that the world does not know. For example, we do not know whether Iran is conducting secret activities at undisclosed sites, or when Iran could develop a crude nuclear weapon, with estimates ranging from several months to several years. We also do not know whether Iran’s divided leadership has decided to develop nuclear weapons, or to stop just short, calculating that the country could derive many of the benefits of possessing nuclear weapons without running the risks or incurring the costs of actually doing so.

Either way, Iran’s activities confront the world with difficult choices. None is costless or risk-free. Moreover, neither the costs nor the risks are possible to calculate with precision.

One option would be to accept and live with a nuclear or near-nuclear Iran. This assumes that Iran could be deterred from using its weapons, much as the Soviet Union was during the Cold War. Missile defenses could be expanded; the United States could extend security guarantees so that Iran would understand that the threat or use of nuclear weapons would be met with a decisive American response.

But there are significant drawbacks to acquiescing to a nuclear-armed Iran. Given its use of subversion and terrorism against its adversaries, a nuclear-armed Iran might be even more assertive. It might also transfer nuclear-related material, technology, or weapons to allies (Hugo Chávez’s Venezuela, for example) or radical organizations such as Hezbollah and Hamas. And, rather than promoting caution and stability in the region, Iran or Israel could be tempted to strike first in a crisis.

Nor can it be assumed that Iran’s divided and radical leadership would always act rationally, or that proliferation would stop with the Islamic Republic. If Iran develops its nuclear weapons, countries such as Saudi Arabia, Turkey, and Egypt would be tempted to purchase or develop nuclear weapons of their own. A Middle East with multiple fingers on multiple triggers is as good a definition of a nightmare as there is.

At the opposite end of the spectrum of policy choices is a preventive attack: a military strike (most likely by Israel, the US, or both) against sites in Iran associated with its nuclear program. The core objective would be to interrupt the emergence of a threat that is still gathering.

Here, again, there are considerable drawbacks. Even a successful preventive attack would at most set back Iran’s nuclear program a few years. It would almost certainly be rebuilt, presumably in underground, fortified sites that would make future attacks far more difficult to carry out.

Moreover, Iran could well retaliate immediately against targets that could include Saudi Arabia, Iraq, Afghanistan, and other US interests worldwide – as well as sites on American territory. Hezbollah could attack Israel. If all of this happened, the price of oil would skyrocket owing to shortages and fears, possibly driving much of the world economy, already in a precarious position, into recession. An armed attack could also cause the Iranian public to rally around the government, reducing the chances that a more responsible leadership might emerge.

It thus comes as little surprise that the US and much of the world have explored alternatives, including regime change in Iran. But, however desirable that might be, no policy can assuredly bring it about. As a result, the principal policy toward Iran centers on the imposition of increasingly painful economic sanctions. The rationale underlying this policy is that Iran’s leaders, fearful of losing political control as popular discontent increases over the sanctions’ effects, will recalculate the costs and benefits of their nuclear activities and become receptive to negotiated constraints in exchange for removal of sanctions.

That could happen. International support for sanctions is considerable and increasing. It is becoming more difficult for Iran (whose economy depends to a large extent on oil exports of more than two million barrels a day) to find customers – and especially customers willing to pay full price. Meanwhile, Iran’s currency is weakening, pricing imported goods out of many Iranians’ reach.

Additional elements of current policy that seem to be having an effect are clandestine efforts aimed at impeding Iran’s ability to import sensitive technologies. Viruses have infiltrated computers in Iran, reducing the efficiency of the centrifuges central to enriching uranium. It is also possible that the assassination of selected individuals has slowed the advance of Iranian nuclear efforts.

But slowing Iran’s efforts is not the same as stopping them. So one question is whether existing sanctions can be extended and tightened; here, China and Russia must determine their priorities. Another question is whether any sanctions will be enough to persuade Iran’s leaders to accept verifiable limits on their nuclear program. And a third unsettled issue is how long Israel or the US will tolerate Iranian efforts before striking militarily.

Indeed, the only certainty may be that Iran’s nuclear program will be a major international issue in 2012 – quite possibly the most important one.

Richard N. Haass, formerly Director of Policy Planning in the US State Department, is President of The Council on Foreign Relations.

www.project-syndicate.org

All countries, developed and developing alike, are attaching unprecedented importance to human rights nowadays. Reports on human rights issues often grab headlines.

Because of the fast development, any news related to China may attract much attention from the international community. When someone mentions "human rights" and "China" in the same breath, it naturally draws eyeballs. Therefore, playing up so-called human rights issues in China has become a shortcut for certain Western media and politicians to grab attention and make a name for themselves.

US Ambassador to China Gary Locke has attracted attention recently. On the eve of assuming his duties in China, he claimed that he would "raise human rights issues and individual cases with Chinese government officials at the highest levels". After coming to Beijing, he has pointed fingers at China's human rights situation on several occasions. He has even said that human rights climate in China is "getting worse" days ago.

Maybe that's part of Locke's routine job. But he should know China more than other Westerners in a more objective way. He should have a better idea about whether livelihoods of the Chinese people in the past decades have improved or deteriorated, and whether the rights they enjoy have expanded or narrowed. He should be aware of the fact that "the State respects and preserves human rights" has been incorporated into China's Constitution and the protection and promotion of human rights have been part of the overall strategy of national economic and social development.

China has taken remarkable strides in many aspects over the years. The legal system of human rights protection has developed. Democracy and rule of law has improved. The rights and interests of all ethnic groups are safeguarded, and poverty alleviation efforts strengthened. All these developments deserve credit if viewed in a fair manner. However, it's really regrettable to see that Locke has turned a blind eye to China's great achievements and dwelled on tiny issues and a few people and made such inappropriate remarks.

Some Westerners claimed that they were "deeply concerned" over the so-called crackdown on several "human rights defenders" in China. In fact, the "human rights defenders" they referred to are people that breached Chinese laws and regulations. Every government shoulders the responsibility to maintain social stability and safeguard the rule of law. It is the obligation of the Chinese judicial authorities to punish those who plot to subvert the State and jeopardize national security. It is a matter of China's judicial sovereignty.

If certain Westerners insist on associating it with human rights, then how will they interpret section 2383 regarding the crime of rebellion and insurrection as well as section 2385 regarding the crime of advocating overthrow of government in Chapter 115 of the US Code? How will they interpret the cases, dealt by the US judicial authorities, of inciting confrontation between US citizens and the government over issues of military service and military operations abroad in the last century?

It is neither fair nor logical for certain Westerners to focus on a few individual cases while ignoring the remarkable achievements made by 1.3 billion Chinese people.

Recently, several incidents have occurred in the US, too. Western politicians and media that have always boasted that they fly the flags of freedom of speech were silent on this. They tried hard to play down the influence of the incidents. Here come questions: How to balance the relations between maintaining social order and protecting the lawful rights of every citizen? How to avoid double standard on democracy and freedom? Every country should make self-reflections on these questions.

If Locke could look at China's human rights progress in an objective and fair way, he would better enhance mutual trust between China and the US.

The author is a Beijing-based scholar on international relations.

(China Daily 01/21/2012 page5)

People in the United States and the rest of the world are watching the Republican presidential primaries closely.

The US officially embarked on the road to the critical presidential election in November with the Republican caucus in Iowa and the New Hampshire primary. The journey will be heavily influenced by interpretations of the US economy and its relationships with the rest of the world.

Some people lament the extent to which the US has lost its competitive edge to other countries, especially in Asia; they are saddened that it can no longer influence global economic and financial outcomes.

Therefore, it should not be surprising to see candidates going to extremes in the heat of the campaign to make their points clear. To a certain degree, they are already doing so and have let US domestic politics hijack Sino-US relations.

Republicans are emphasizing that it's necessary to confront China. Mitt Romney, the leading Republican candidate, is already attacking China. He has said that US President Barack Obama has allowed China to "run all over us" when it comes to taking American jobs. He favors imposing tariffs on China to "punish" it for its "currency manipulation".

But China is more than what the Republicans think about it. A 2011 Pew Research Center poll identified three core Republican groups, based on their attitudes to certain questions. About 80 percent of the "staunch conservatives" wanted the US to get tough with China on economic issues, but "main street Republicans" and "Libertarians" were more evenly divided on whether Washington should get tough or build stronger economic relations with Beijing.

Should we get angry that China figures so prominently in an election campaign on the other side of the Pacific?

Advocates of stronger Sino-US trade and cooperation in Washington are looking more closely at the anti-Beijing rhetoric, fearing that it could lead their country into a trade war with China. The US-China Business Council has even produced fact sheets detailing the impact of trade with China on key primary and caucus states.

New Hampshire, for example, exports $412 million worth of goods to China every year, making it the third-largest US state exporter to China. South Carolina exports goods worth $2.2 billion to China. Besides, the annual exports from Nevada to China increased from about $11 million in 1996 to more than $455 million in 2010, according to data provided by the state.

There's little doubt that the dominance of the US as a global economic power is coming to end, and the future will see other economies competing with it for influence and/or market share.

Foreign Policy, a bimonthly American magazine, sought the opinions of nine leading international relations scholars, including Francis Fukuyama, Joseph S. Nye and Robert Keohane, on the biggest foreign-policy challenges facing the US. Thirty-two percent of the scholars said their shortlist included the rising power of China, up from 23 percent in the 2008 survey. The scholars said East Asia was the region of the greatest strategic importance to the US today, with 45 percent - or 15 percentage points more than in 2008 - of them identifying it as the most significant area.

There are other reasons why we shouldn't take the election campaign at face value, for the Republican primaries are getting wilder on other issues too. Take former senator Rick Santorum and Texas governor Rick Perry, for instance. Santorum said he believed that the entire West Bank belongs to Israel. According to him, it is filled with Israelis and is thus an Israeli territory. Perry, on the other hand, said it was a bad idea to withdraw US troops from Iraq and, if elected president, he would reverse Obama's decision and send them back to Iraq to counter the influence of Iran in the region.

What should one make of such comments? If the Republicans can be so absurd during the campaign, should we take them seriously?

The author is a senior writer with China Daily.

(China Daily 01/21/2012 page5)

US refuses to admit the benefits of bilateral trade and is ignorant of the damage its financial crisis has caused to China's economy

The Wall Street Journal published an article on Sino-US trade last year, arguing that the flow of goods from China has deeply undermined the United States. The article quoted three American researchers as having said that the economic compromises the US has had to make because of competition from China are far beyond people's imagination.

This indeed is a fallacy.

Sino-US trade has flourished since the establishment of diplomatic ties between China and the US in early 1979. Statistics from the US show that the bilateral trade volume increased from a meager $2.37 billion in 1979 to $456.8 billion in 2010, a 193-fold increase. Also, Sino-US trade accounted for 14.3 percent of the US' total foreign trade volume in 2010. If bilateral trade had not been conducted on a mutually beneficial basis, such a considerable trade growth would not have been possible.

In fact, deepening mutual benefit, reciprocity and interdependence have made China and the US strategic trading partners now.

Given their different development stages, China and the US complement each other in many ways in their industrial structure. The complementary and mutually beneficial trade between China and the US is a typical example of the largest-scale and most-extensive division of labor and cooperation in the international community.

In the early 1980s, the US underwent its third industrial structural adjustment, which caused an exodus of a large number of labor-intensive industries overseas. This trend concurred with China's reform and opening-up policy and its efforts to absorb foreign funds and develop processing trade, thus facilitating cooperation between the two countries. Take shoemaking for example. In 1976, US shoemakers made about 53 percent of the leather shoes available in the American market. But now, China exports 80 percent of the leather shoes sold in the US.

Most of the goods China exports to the US are quality but inexpensive products of daily use that cater to American market demands. These Chinese exports have helped ease inflation in the US and served as a necessary supplement to the US' industrial structural adjustment and economic development.

According to a Morgan Stanley estimate, China had a $229.2-billion surplus in its trade with the US from 1996 to 2003, but the export of huge amounts of quality but inexpensive Chinese goods to the US helped American consumers save as much as $600 billion. Such exports have also helped American manufacturers to reduce their production costs and the US government to curb inflation.

International trade is based on mutually complementary advantages. Chinese workers' per hour wages on average is $1.5, whereas their counterparts in the US make $18 to $20 an hour. If American workers were to make labor-intensive products such as leather shoes today, many US consumers would not be able to afford them.

The strength of the US lies in high technology. To give just one example, China has bought more than 600 large Boeing jets since 1980. If just one Boeing 747 costs more than $100 million, one can imagine how many high-paying jobs China has helped maintain and/or create in the US. In return, China can only sell about 50 million pairs of leather shoes to fill the trade gap.

China is not only the biggest exporter to the US, but also the fastest-growing market for US exports. China was the 11th largest market for American exports in 2000, but it became the third largest in 2007, that is, it jumped eight places in just seven years. According to statistics from the US-China Business Council, US exports soared 465 percent between 2000 and 2010, while the average increase in US exports to other trade partners was only 56 percent.

According to the October 2010 blueprint of the US Department of Commerce, which aims to double exports to its top 10 markets in five years, American exports to Canada and Mexico on average will increase by only 2.4 percent and 3.7 percent a year, while those to China will increase by 16.7 percent. (Actual US exports to China increased by 32 percent in 2010.) Therefore, it is obvious that US President Barack Obama's plan to double US exports in five years cannot be realized without the huge Chinese market.

The US should calculate how many US jobs its exports to China help maintain and/or create to realize that the benefits of bilateral trade far outweigh the drawbacks.

With the robust growth of bilateral trade, US investments in China have increased (and are increasing) fast. From 1980 to late June 2011, the US' real investment in China reached $66.9 billion and US capital funded more than 60,000 enterprises in the country.

A survey conducted by the American Chamber of Commerce in China shows that the profit of 85 percent of American enterprises in China increased in 2010. Besides, about 40 percent of the products China exports to the US are made by American companies in China. That is to say, these companies' exports are calculated as part of China's trade and go on to make China's trade surplus, whereas the profits are pocketed by American entrepreneurs and remitted back to the US. But the US government and Congress always use the trade surplus as an excuse to pressure Beijing to revaluate the yuan further against the dollar.

Perhaps it is time Chinese scholars figured out how much damage the US financial crisis has caused to the Chinese economy.

The author is a senior researcher at the Center for US-China Relations, Tsinghua University. The article first appeared in the Global Times.

(China Daily 01/21/2012 page5)

NEWPORT BEACH – More than three years after the global financial crisis, the world still has a nasty plumbing problem. Credit pipes remain clogged, and only central banks are working to clear them. But their ability to do so is waning, posing yet another set of risks for Western economies blocked by too little growth, too much unemployment, deepening inequality, and debt in all the wrong places. Fortunately, it is not too late to build broader pipes that compliment and replace the damaged infrastructure.

The current situation embodies two narratives that seem contradictory, but are not. One speaks to the reality that most large companies with access to capital markets have no problem securing new funding. In fact, they have been remarkably successful in lengthening their debt maturities, accumulating cash, and lowering their future interest payments. In sum, they now have “fortress” balance sheets.

The other narrative speaks to an opposing, but equally valid reality. Too many small companies and households still find it difficult to borrow at reasonable terms. This includes those reliant on bank credit, as well as many mortgage holders with very high legacy interest rates and balances that exceed their homes’ market value.

From every angle, the extremity of this state of affairs – in which those with access to credit do not need it, and those who do cannot get it – is highly problematic. If left unattended, it leads to a gradual, and then accelerated, renewed deleveraging of the economic system, with the highest first-round costs – a longer unemployment and growth crisis – borne disproportionately by those least able to suffer them. In the next round, as the system slowly implodes, even those with healthy balance sheets would be impacted, accelerating their disengagement from a deleveraging world economy.

All of this slows social mobility, tears already-stretched safety nets, worsens inequality, and accentuates genuine concerns about the functioning and sustainability of today’s global economic system.

This is not just about socio-economic issues. There is also a political angle. With two competing, yet simultaneously valid narratives, ideological extremes harden. The result is even greater dysfunction in both process and content, ruling out any sustained policy attempt to make things better.

The problem has become acute in Europe, whose crisis has been belatedly recognized as reflecting something more than turmoil in the eurozone’s weakest countries. It also reflects broad-based contamination, resulting, most recently, in France’s loss of its vaunted AAA sovereign credit rating.

In the process, the efficacy of pan-European rescue mechanisms is being undermined. And, as fragilities increase – and as a financial wedge is driven into the eurozone’s core (Germany and France) – growth and employment prospects dim.

Central banks have recognized all of this for some time, prompting them to take enormous reputational and operational risks to slow the process. They have implemented a host of “unconventional policies” that previously would have been deemed unthinkable, even outrageous – and that can be seen in the enormous growth in their balance sheets.

In the last four years, the United States Federal Reserve’s balance sheet has more than tripled, from under $1 trillion to a mammoth $3 trillion. The growth relative to the size of the economy is even more stunning – from slightly more than 5% of GDP to 20%. The Bank of England’s balance sheet is also at 20% of GDP. And both seem to be itching to do even more.

The European Central Bank is often viewed as a laggard. No longer. Its balance sheet has now doubled, to a whopping 30% of GDP – and it, too, appears set to do even more. Mario Draghi, the ECB’s new president, recently said that he expects heavy take-up on the next three-year long-term refinancing operation, a powerful tool to pump cheap liquidity into the banks.

Unfortunately, the economic outcomes have come nowhere close to matching the intensity of these efforts. Effectively, the central banks have been unconventional bridges to nowhere, owing mainly to their imperfect tools and other government agencies’ inability or unwillingness to act. At some point – and we are nearing it – bridges to nowhere become a standalone risk: they can topple over.

Rather than just pumping liquidity into clogged pipes, countries can and should do more to build a more effective network of compensating conduits. In doing so, their main objective (indeed, the test for effectiveness) would be the extent to which new private-sector investment is “crowded in.”

It is high time to move on five fronts, simultaneously:

·Countries such as Spain and the US need to be more forceful in unblocking the housing sector by making overdue decisions on burden sharing, refinancing, and conversion of idle and foreclosed housing stock.

·Countries with excessive debt, such as Greece and Portugal, need to impose sizeable “haircuts” on creditors in order to have a reasonable chance to restore medium-term debt sustainability and growth.

·In several Western countries, public-private partnerships should be formed to finance urgently needed infrastructure investment.

·Regulators should stop bickering about the future configuration of key financial institutions, and instead set a clearer multi-year vision that is also consistent across borders.

·Finally, governments should inform their electorates explicitly and comprehensively that a few contracts written during the inadvisable “great age” of leverage, debt, and credit entitlements cannot be met, and must be rewritten in a transparent way that strikes a balance between generations, labor and capital, and recipients and taxpayers.

Such policies would allow healthy balance sheets around the world, both public and private, to engage in a pro-growth and pro-jobs process. They require leadership, focus, and education. Absent that, plumbing problems will become more acute, and the repairs more complex and threatening to virtually everyone – including both the “one percenters” and those who worrisomely are struggling at the margins of society.

Mohamed A. El-Erian is CEO and co-CIO of PIMCO, and author of When Markets Collide.

www.project-syndicate.org

WASHINGTON, DC – Despite years of official talk about addressing global current-account imbalances, they remained one of the world’s main economic concerns in 2011. Global imbalances were, to be sure, smaller overall than before the crisis, but they did not disappear. Now some are increasing again, alongside inequality in many countries. That link is no accident.

One often hears calls for global rebalancing whereby emerging-market countries with payments surpluses – China is the most-often mentioned – would stimulate internal demand, so that advanced countries (the largest being the United States) could reduce their deficits and public debts with less threat to their economies’ recovery. The net foreign demand created by a reduction in balance-of-payments surpluses abroad would partly offset the weakening of public demand in the US and other high-debt countries as they tightened fiscal policy.

The story should not, however, be just about current-account deficits in advanced countries and surpluses in the emerging countries. Many emerging-market countries – including India, South Africa, Brazil, and Turkey – actually run current-account deficits. There are also many advanced countries that run a current-account surplus: Germany’s has been well publicized since the eurozone crisis started, but Japan, the Netherlands, Norway, and Sweden run surpluses as well.

So, while global rebalancing does require a reduction of surpluses, the issue is not simply one of shrinking emerging-market surpluses in order to allow a corresponding decline in the deficits of the advanced countries. As we enter 2012, a reduction in Germany’s surplus may be more urgent than a reduction in China’s, since reducing Germany’s surplus will yield more immediate benefits for Europe, where the greatest risks to global recovery lie.

Moreover, the Chinese renminbi is experiencing a fairly steep real appreciation, as inflation in China is rising much more rapidly than in the US or the eurozone. Indeed, the “German” euro is losing value, despite Germany’s large surplus, because it is also the currency of the southern European countries that are in so much trouble.

The Chinese and German current-account surpluses are correctly viewed as an obstacle to recovery, because they subtract from potential world effective demand and contribute to global “planned savings” exceeding “planned investments” – a recipe for recessionary pressure. But the increasing concentration of income and wealth within many countries, foremost the US, should attract similar “Keynesian” worries.

An increasing concentration of income and wealth can be viewed as an “internal” imbalance similar in some ways to “external” current-account imbalances, because the highest-earning groups tend to save a much larger share of their income. An ongoing income shift towards the highest earners will tend to lead to higher overall savings, which would have to be compensated by higher investment, higher net exports, or higher public expenditures to avoid recessionary pressure.

While levels of inequality around the world vary widely, the tendency towards greater concentration at the top appears to be a general one, and it is changes in concentration that lead to changes in planned savings. An ongoing trend towards income concentration should be expected to lead to deflationary pressure wherever it takes place.

Of course, other factors, including government policies, can compensate for that pressure. In the US, low interest rates and debt-financed consumption by lower-income groups, encouraged by government policy and financial-sector practices, compensated for higher savings at the very top during the pre-crisis years. Thus, despite record income concentration, the US ran a large current-account deficit. In China, net exports and strong government-supported investment ensured continuous expansion. In Germany, too, net exports increased.

Nonetheless, shifts of income to high-saving groups and increasing current-account surpluses have similar first-round effects on aggregate world savings. Of course, it is only the first-round effects that are similar. Much then depends on whether an increase in a current-account surplus leads to more reserve accumulation or more direct investment abroad; on how different income groups allocate their spending between imports and domestic goods; and on what kind of macroeconomic policies are being pursued.  

The full story of imbalances has to include propensities to spend on imports and domestic goods in various countries, as well as the balance between public and private savings. Moreover, it is necessary to complement our concerns about “global imbalances” with an analysis of how increasing income concentration may be leading to “internal imbalances” and recessionary pressures that are similar in magnitude.

These imbalances are linked, and both threaten sustainable rapid growth. Global imbalances and rising domestic inequality need to be analyzed and debated together. Only then can they be addressed effectively.

Kemal Derviş, a former minister of economics in Turkey, administrator of the United Nations Development Program (UNDP), and vice president of the World Bank, is currently Vice President of the Brookings Institution.

www.project-syndicate.org

The strategic defense guideline issued by the USDOD on January 5, 2012 reads that in the long run, China's emergence as a regional power will have the potential to affect the U.S. economy and its security in various ways, China continues to develop its asymmetric means to contend against the projection capabilities of the American forces, and China must clarify its strategic intentions while increasing its military strength. The US armed forces will continue to strengthen the diplomatic, economic and military activities in the Asian-Pacific region and maintain the stability of the region by strengthening the relations with its Asian allies and partners.

Geng Yansheng answered the questions raised by reporters concerning the above China-related contents that China has paid attention to the strategic defense guideline unveiled by the American side and will watch out for the influence of the shift of the US military strategies on the security situation of the Asian-Pacific region and the world at large.

He said that the U.S. criticism against China in this document is groundless. It is universally known that the strategic intentions of the national defense and army building of China are consistent and explicit, and China’s peaceful development means opportunities rather than challenges to the international community including the US.

I do so not only because traveling is difficult at this time of year. Another reason is that the city empties out during the holiday. Around half of Beijing's 18 million residents come from other parts of China, and many of them return to their hometowns during the New Year.

With this exodus, buses and subways are much less crowded. And because Beijing is China's capital, most cafés and restaurants remain open at least part of the holiday. All of this makes Spring Festival the perfect time to stay here and relax with a book or contemplate life in a favorite quiet coffee bar.

However, one of my best Beijing Spring Festival memories has nothing to do with such activity. It dates back to the 2009 New Year, when I lived in an apartment complex on the corner of Ghost Street and Dongzhimen Beixiaojie.

Like this year's Spring Festival, that one came early, in the last week of January. The weather leading up to it was bitterly cold. Frigid air from Siberia caused the mercury to plummet, while a howling wind made it feel even colder and kept me awake throughout the night.

On the last day of work before the festival, our boss let us go home early, so I immediately headed to the warm Kenzo Oriental Mall, to curl up with coffee and a book in one of its cafés. But when I left there mid-afternoon, it was a little warmer and the wind had died down. After being cooped up indoors in front of a computer for nearly a week, my immediate inclination was to take a stroll through the hutongs on the west side of Beixiaojie.

I soon came across three children, two boys and a girl, none of whom could have been older than 10. They were all bundled up against the cold and playing a game of marbles. They had just two marbles, both of which were old and scruffy "cats-eyes." When I played marbles as a small child, these marbles were not highly prized.

But despite having just the simplest of toys, they were having the time of their lives, running back and forth as they shot the marbles, talking in animated voices and laughing out loud. I paused to watch them, asking the girl how old she was. She replied in English, saying, "I'm 9," and thanked me when I told her they were all very "ke ai" (可爱), or "cute."

After leaving the scene, I thought about how different these children were from their affluent counterparts. Around Christmas time, I often see the latter getting expensive toys as gifts in some upscale department store and say to myself, "Within a few months, most will certainly be bored with their new playthings."

Of course, hutong life should not be romanticized. My Dongzhimen neighbor's middle school-aged daughter, for example, preferred living in the apartment block over their old siheyuan, as it was larger and had modern conveniences, like an indoor toilet.

But I also think that while the three hutong children were not materially wealthy, their lives were, in other important ways, richer than those of more affluent kids. In particular, the dense and close-knit hutong neighborhood offers them cultural and social resources that only come in strong and cohesive communities.

Thanks to this community, these children—most now come from one-child families—have more than just a few neighborhood kids to serve as friends and playmates. Several generations of adults also act as mentors and teachers, assisting children not only with school lessons, but with practical life matters as well. It really does take a hutong to raise a child!

Finally, since people in the neighborhood all look after one another, children can safely roam about on their own. Most parents in the US would be very reluctant to let their very young children play alone, without adult supervision.

This kind of dense associational life is largely, if not completely, absent from most big apartment blocks, including the newer, upscale ones inhabited by China's nouveau riche.

In the summer of 2009, I moved from Dongzhimen to Sanlitun and did not do any hutong walks during the 2010 and 2011 Spring Festivals. But if the weather is good this year, I'll look forward to revisiting my old Dongzhimen-area hutong haunts.

The author is an American corporate trainer in China.

Promoting clean energy is necessary to meet the growing demand from urbanization and to guarantee supply security

At the just concluded fifth annual World Future Energy Summit in Abu Dhabi, Premier Wen Jiabao made a speech outlining China's efforts to adopt clean technology and renewable energy. However, its coal dominated energy structure will remain difficult to change in the near future, as China is a big country with a low per capita income that requires a large amount of energy to support its ongoing industrialization and urbanization.

China's energy demand during its urbanization and industrialization will be huge and it will increase rapidly. China's urbanization rate will rise to about 62 percent by 2020, implying a net increase in the urban population of about 300 million. Our estimates indicate that the energy consumption of China's urban citizens is about 3.5-4 times that of rural citizens on average. Urbanization also requires huge quantities of cement and steel, which can only be produced in China, as no other country can produce the quantities needed. Therefore, before 2020, China's economic structure will have low energy efficiency, high energy consumption and high emissions.

However, with China's growing addiction to foreign oil, as well as its increasing coal consumption, China has ample motivation to exploit new energy, in an effort to guarantee its energy security and to address environmental problems. Developing new energy technologies and new energy sources is a necessary choice for China. The government should take urbanization as an opportunity to promote energy conservation and introduce effective policies to support clean energy development.

To do this requires a good understanding of China's development constraints, which include energy scarcity, environmental pollution and climate change, energy security, and energy costs.

Energy scarcity will be a hard constraint for future economic growth, and should be a fundamental force for energy conservation, while the country's large energy demand also makes reducing emissions difficult and costly, and the efforts of the government have failed to fundamentally reduce pollution and protect deteriorating ecosystems.

China's oil consumption has increased by about 7 percent every year in the past 10 years and China's oil dependence was 55 percent in 2010, increasing by about 3 percentage points annually. If nothing is done to alter this, China's oil dependence could possibly reach 65 percent by 2015, more than that of the United States.

The country's rapid economic growth requires sufficient and cheap energy. Given China's emphasis on social stability, energy prices are a sensitive issue and a key factor affecting clean energy development.

China obviously has great potential for energy conservation. Energy conservation is cheaper and cleaner, and more importantly, it addresses all four of the constraints.

Despite its impressive progress so far, further developing clean energy remains a big challenge for the country. The high cost is the first obstacle. Coal is much cheaper compared to clean energy sources such as wind, solar, and biomass. The second obstacle is the "quality" of clean energy. From the perspectives of supply stability, the large-scale transmission of renewable energy poses great challenges for the power grid. Finally, the recent nuclear crisis in Japan has cast a shadow on the development of nuclear power, a renewable energy with supply stability, although its large-scale exploitation and utilization are still feasible with the ongoing development of technologies, so the Japanese nuclear crisis is unlikely to change China's nuclear strategy.

China already has a sizable research and development capacity and because of its population size and growing energy demand there is ample incentive for the clean energy industry to develop, as there are large potential profits for enterprises that invest in clean energy research.

The government should actively promote research and development cooperation among related parties and should put forward supporting policies that provide an enabling environment for the development of clean energy. In addition, the government should further formulate policies that are conducive for financing clean energy technologies. Since one of bottlenecks of clean energy development is grid connection, the grid companies should also actively participate in the development of clean energy.

Government support for clean energy development is needed in the short run, but its long-term development will require reforming energy pricing to ensure clean energy is competitive with fossil fuels. If the government continues to control energy prices, a better design of subsidies for clean energy is required.

The higher the per capita income, the more affordable clean energy is and the greater the environmental awareness. Developed countries clearly have advantages in both as their much higher per capita incomes are much higher than China's, therefore as long as intellectual property rights are properly protected developed countries should also provide financial and technical support for the development of clean energy in developing countries.

The author is director of the Center for Energy Economic Research of China in Xiamen University.

(China Daily 01/20/2012 page8)

A video clip showing a quarrel between several mainland tourists and local Hong Kong residents on a subway train in the special administrative region has unexpectedly become an Internet hit.

The squabble was sparked by what most mainlanders would consider a trivial matter - mothers feeding their children instant noodles on the subway, oblivious to the no-food-and-drink rule that local passengers abide by.

However, on a scale of fierceness the quarrel was no match for what I see almost daily on Beijing streets. There were raised voices, but no extremely vile words were used. And there were no severe consequences. The dispute ended after a subway employee intervened.

But since the video was posted online, tens of thousands of netizens have left comments. The event hit the local media headlines, and Sohu, one of China's largest news portals, posted the clip on its front page.

It has become a symbol of the "culture clash" between Hong Kong and the mainland.

Internet users from the mainland overwhelmingly pointed to Hong Kong residents' sense of superiority - something that was routinely felt by the less wealthy mainlanders when they visited Hong Kong before its return to the motherland in 1997 - only a very few took a neutral stand, noting that mainland tourists should learn to behave themselves while Hong Kong people should be more tolerant and not overact.

I would no doubt have reacted in the same way as most of my mainland compatriots if I had not lived in Hong Kong for five years. In fact, I was expecting to experience discrimination when I was first sent to the city in 2000 to work for the local bureau of our newspaper.

After all, I had experienced not so subtle discrimination in big cities such as Shanghai where I could not speak the local dialects. Given Hong Kong's history as a British colony for more than 150 years, what more could I expect?

Yet my fears never materialized. Instead, my five years living and working in Hong Kong are some of my most pleasant memories. Instead of enmity and discrimination, I was shown hospitality and care by the local people, who were always polite and ready to help.

Looking back, I am still moved by the heart-warming moments when I was helped by people on the street, in banks or in department stores. Mandarin was never a hindrance. Once when I was riding on a double-decker bus, a local Cantonese-speaking resident, after learning of my mainland background, asked me to correct his Mandarin pronunciation.

There is no denying that the manners and etiquette of some visitors from the mainland do not meet the standards set by the local Hong Kong residents. But poor manners are considered only a nuisance. Their real gripe comes from the fact that greater spending power enjoyed by many from the mainland has in some way hurt the Hong Kong people's self-esteem and quality of life.

It was a loss of pride that prompted Hong Kong people to take on the street to protest against D&G after the Italian luxury brand banned locals from taking photos of its shop front while allowing wealthy mainland customers to do so. And as rich mainlanders snap up properties, Hong Kong residents are also feeling the pinch of rising housing costs.

While the mainland's growing wealth has been a boon to the Hong Kong economy, Hong Kong people are feeling an increasing sense of loss as the city loses its edge as the only gateway of the mainland to the outside world. Its status as a global shipping and financial center is facing intense competition from mainland cities like Shanghai and Shenzhen. There has been heated debate about how Hong Kong should reposition itself now that the mainland has opened up on an unprecedented scale to the world.

The verbal sparring on the subway was sparked not by Hong Kong residents' sense of superiority, but rather by their growing sense of inferiority.

The author is a senior writer with China Daily.

(China Daily 01/20/2012 page8)

The United States is expediting its efforts to persuade its allies like Japan and the Republic of Korea to reduce their oil imports from Iran. Even the European Union is weighing options to impose a ban on Iranian oil.

China, however, has no reason to follow the US and impose economic sanctions on Iran. Contrary to the US' understanding, Premier Wen Jiabao's Middle East visit aims at deepening cooperation, including accelerating the free trade zone negotiations, between China and the region.

Bulk commodities are special products whose prices are greatly influenced by politics, and from uprisings to sanctions to war, anything can turn the tide in the international market. But fuel oil is different. That explains why international oil prices remain strong despite the fall in the prices of other bulk commodities.

The Persian Gulf has long been troubled by threats of war, and now the US is lobbying the international community to put the screws on Iran. But China should read into this game and refrain from succumbing under other big powers' pressure. There are certain things China should keep in mind.

First, the sanctions against Iran date back to 1984 or even earlier and have been led by the US instead of the United Nations. Washington loves to call itself "the international society" and is prone to imposing unilateral sanctions without UN approval. Legally, China is not obliged to do the same unless the UN Security Council passes a resolution. China should follow its own course, for Sino-Iranian trade is in accordance with international laws.

Second, China's foreign policy seeks peace and development to create a stable environment for its own and the world's development. Imposing fresh sanctions on Iran will only worsen the already tense situation in the Gulf region and add uncertainties to the world economy, which is struggling under the impact of the EU and the US debt crises. The recent fluctuations in international bulk commodities' prices and currency exchange rates have already proved that.

A war in the Persian Gulf will deal a deadly blow to the already fragile world economy. As a responsible country, China cannot support some powers' irresponsible actions, for they will only increase the risks. So it's high time the US reviewed its abuse of sanctions as a weapon to penalize its opponents. It led 77 of the 116 sanctions from 1914 to 1990, and participated in more than 60 of the about 80 cases after the end of the Cold War. These sanctions have hurt half of the global population, which is in stark contrast to the US' claim of taking the decisions "for democracy and freedom".

Third, joining the US to impose sanctions on Iran will hurt China's own economy. Iran is an essential overseas market for goods, especially technology-intensive ones, from China, which built the subway in Teheran. So China should not forfeit the Iranian market just to please the US.

Oil imports from Iran are very important for China. If China stops importing oil from Iran, it will face immediate shortage of fuel. Even if China can meet the shortage by importing from other countries, it would have to pay high prices and meet harsh conditions, which will deal a terrible blow to its economy. China has long suffered the whims of big oil-exporting companies and it's time their monopoly was curbed.

According to a new act signed by US President Barack Obama, the US has prohibited foreign financial institutions doing business with Iran from entering that country's financial market, a move considered harsh by many observers.

But do not forget other obstacles for China's financial institutions upon entering US market. China should not give up a huge cake for this small loss.

Facts prove that US-led economic sanctions have often caused humanitarian crises instead of "liberating" people in many countries. Sanctions imposed on Iraq reduced its per capita income from $4,000 in 1991 to about $300 in 2000, forced the cancellation of its free education system that had existed for more than 30 years and killed 1.73 million Iraqi people, more than half of them children, because of malnutrition or lack of medicines.

Besides, we should not forget that the US imposed sanctions on Iraq and attacked that country in 2003 on the pretext that Saddam Hussein had amassed "weapons of mass destruction" only to be proved wrong.

How can some countries continue to cause such tragedies and hold innocent people to ransom?

The US often shoots itself in the foot by imposing sanctions on its opponents. For example, it imposed sanctions on the former Soviet Union in 1981, but it couldn't stop West European countries or Japan from bidding for Soviet construction projects. In the process, the US lost about $2.2 billion. The share of the US in Western exports to the Soviet Union dropped from 25 percent in 1978 to 0.4 percent in 1984. Apart from suffering a huge loss, the US also faced increasing frictions from some European countries and Japan.

If sanctions can only hurt people, why can't the US stop the damaging practice and try to resolve the issues through talks?

The author is a researcher at the Chinese Academy of International Trade and Economic Cooperation, affiliated to the Ministry of Commerce.

(China Daily 01/20/2012 page9)

Premier Wen Jiabao's six-day trip to the Arabian Peninsula has brought China's bilateral relations with Saudi Arabia, the United Arab Emirates and Qatar to a new level. It has also enhanced China's cooperation with regional organizations including the Arab League and the Gulf Cooperation Council (GCC).

With the United States exerting unprecedented pressure on Iran over its nuclear program, the Gulf region is the focus of global attention. Many fear that the US-led West's tightening sanctions on Iran will trigger repercussions in the global petroleum market. Worse, if the US chooses to solve its confrontation with Iran by force, the region will be plunged even deeper into crisis.

Against such a gloomy outlook, the pledge by China and the three Arab countries to step up cooperation has sent a positive signal to the rest of the world, as China's commitment to expanding cooperation with the three nations in an all-round way will contribute to regional peace and development.

China's traditional friendship with Arab countries and the entire Muslim world has been greatly strengthened in recent years, especially after the establishment of the Sino-Arab Cooperation Forum in 2004. The two sides have created more than a dozen mechanisms under the new platform to advance bilateral interaction in such areas as energy, trade, finance, agriculture, environmental protection, infrastructure and tourism.

Equality, mutual respect and mutual benefits have been the key to flourishing Sino-Arab cooperation over the years and they have set an example in South-South cooperation and exchanges.

The series of agreements signed between China and the three countries are just some of the fruits of Wen's visits. During his trip, China and the GCC also agreed to speed up negotiations on a free trade agreement. The agreement will be a major boost to trade and economic cooperation between China and the GCC, and it will enhance their overall relationship and have a positive influence on global trade.

Wen also discussed a wide range of regional and international issues of mutual concern with Arab leaders. Such high-level interaction facilitates mutual understanding, helps build mutual political trust and paves the way for greater collaboration on regional and international issues.

Given that the Arab world has undergone sweeping changes over the past year, Wen's call for an end to violence against civilians and support to the people in the countries concerned underscores China's consistent perspective on such matters, and epitomizes the country's commitment to peace and stability in the Gulf region and beyond.

(China Daily 01/20/2012 page8)

The Ministry of Human Resources and Social Security is studying the possibility of making the retirement age flexible, according to recent news reports. This will be good news for those who either want to retire earlier or would like to extend their working days to a later age.

A flexible retirement age will certainly be welcomed by many, as some employers have their own policy that requires their employees to retire earlier than the age stipulated by the State, and some keep experts or highly skilled professionals in their positions several years beyond the stipulated retirement age.

But the ministry must be clear about the problems they mean to solve by adopting the new retirement policy.

If they want to make up for the pension deficiencies of retirees, the new policy must be designed so that it is possible for employees to postpone their retirement age by as many years as possible.

The annual pension report for 2011 shows that the pension funds of 14 provinces and municipalities were in red and the deficit was as high as nearly 70 billion yuan ($11 billion). It is unrealistic for the central coffers to always subsidize the pension funds.

Extending the retirement age is a way out. The current retirement age is 60 for male employees, 55 for women officials and 50 for female workers. Some accuse this policy of being discriminatory against women. The adjustment being deliberated upon will be an opportunity to reconsider this discrepancy.

However, increasing the retirement age will at the same time further reduce the opportunities for young job seekers. If the flexible retirement age policy makes it even harder for young people to land a job, the impact of the growing unemployment rate on social stability will offset what the new policy achieves in reduced spending. This is what policymakers must take into consideration in amending the retirement age.

It is also not without reason for some to worry that the policy may be hijacked by some highly paid officials and managers, who may take advantage of the policy to extend their careers and thus make it less possible for younger blood to get promotions.

Clearly the designing of the policy will be complicated, as it will need to balance the needs of different social groups. But enough thought must be given to disadvantaged so that the new policy does not exacerbate existing unfairness.

(China Daily 01/20/2012 page8)

Should or should not fireworks be banned during Spring Festival? This question has become controversial over the past couple of decades and prompted the administration to act one way or the other.

But administrative measures cannot solve this conflict between modernity and traditional culture. Preferably, the solution should be a compromise between the opposing sides, between modernity and traditional customs, between safety and unfettered joy.

People who want fireworks to be banned cite the loss of lives and property, and pollution to stress their point. They also say fireworks have always been a risky affair.

They may be right. Environmental pollution caused by fireworks can no longer be ignored. The environment cannot take the huge volume of toxic gases that goes up during the few nights of colorful but damaging display of fireworks across the country. Besides, serious fires causing loss of lives and property have increased in recent years, like the one that gutted CCTV's new office tower on the day of Lantern Festival in 2009. The CCTV blaze, caused by illegal fireworks display, left one firefighter dead and eight injured, and caused an economic loss of more than 160 million yuan ($25.33m).

But imposing and lifting of bans both have been opposed, albeit by two different groups of people, during the past two decades. So a possible solution may be finding a middle path. Perhaps efforts should be made to limit the time, place, scale, decibel and kinds of fireworks.

First, the time to set off fireworks should be limited to the few days of Spring Festival. There should be a time limit, too, for other occasions like weddings, funerals and other important ceremonies.

Second, fireworks should not be allowed to be set off in residential areas and other crowded places. It's better to designate vast open spaces, especially for large-scale fireworks' displays.

Third, there should be a restriction on the scale of fireworks and the number of people who should be allowed to set them off at one place.

Four, an upper decibel limit for fireworks should be imposed. This limit is very important because fireworks in recent years have become more explosive and thus more dangerous to human and environmental safety.

And last, big and dangerous fireworks should be banned because they are a real threat to human safety. It is not difficult to make more interesting kinds of fireworks while keeping low their decibel levels and explosive power.

If such limits are imposed, we can have a more harmonious relationship between modernity and traditional culture.

The author, based in Hengshui, Hebei province, is a folk culture scholar and observer.

(China Daily 01/20/2012 page9)

Fireworks bring joy during Spring Festival, but they are also a source of danger. The risk of serious fires and human deaths and injuries has increased since the late 1980s, mainly because fireworks with powerful pyrotechnics are made in bulk nowadays.

A debate has been raging for years on whether fireworks should be banned. Beijing imposed a ban on fireworks in 1993 and since then about 300 Chinese cities have followed suit. But Beijing lifted the ban in 2005 in response to people's appeal that lighting fireworks during Spring Festival was an integral part of folk culture.

But after 5,945 fire accidents were reported during first day of the last Spring Festival, which caused a loss of 13 million yuan, many people said the ban should be re-imposed.

Of course, traditions and customs can change. For example, children who grew up in Beijing during the ban may not have seen colorful fireworks light up the sky during Spring Festival. Instead, they enjoyed Spring Festival by having dinner with family and friends, making calls and sending goodwill messages to friends and relatives and/or watching the CCTV Spring Festival Gala. They must have accepted them as tradition. For them, Spring Festival may not have been associated with fireworks.

But the point is not whether customs can change. Rather the point is that we should not adopt legal or administrative measures to change customs, especially the custom of lighting fireworks, which has been around for hundreds of years.

We should reconsider the supporting factors for the ban on such customs. Take pollution, for instance. There are many old customs in many countries that cause pollution or create waste such as the famous La Tomatina festival, which Spaniards celebrate by throwing tens of tons of tomatoes at each other. We cannot ban driving just because vehicles emit greenhouse gases. Similarly, we should not ban fireworks because they are part of our tradition.

Of course, we should take more measures to make fireworks' display safe and to avoid casualties and property loss. The government should strengthen fireworks' production supervision and provide safety guidelines to the people instead of banning them to solve the problem.

The author is a professor and folk customs scholar at the Institute of Literature of the Chinese Academy of Social Sciences.

(China Daily 01/20/2012 page9)

Da Jia Hao!

Mona and I would like to take this opportunity to greet not only our Chinese friends, but our fellow Americans back at home, and all over the world. The Chinese lunar new year is a time for people to return to their laojia, reunite with family, and gather around a holiday meal with loved ones and friends.

The Year of the Dragon is traditionally a time of hope and optimism. It should also be a year of purpose and resolve for the US and China as we mark the 40th anniversary of President Richard Nixon's historic visit to China. Even though President Nixon's visit is considered a watershed moment in the US-China relationship, our history goes further back.

In 1784, as a country that was barely several years old, we sent a trading ship to one of the world's oldest and most vibrant civilizations. Over the next 230 years, the United States and China would share a common journey toward progress.

In the 19th century, the United States came of age as a great nation that stretched from "sea to shining sea." This was accomplished in no small part by Chinese laborers who traveled thousands of miles across vast oceans, away from their families, to help build our transcontinental railroad.

We fought together against aggression in World War II and today, our scientists and engineers are working together to cure diseases, build cars that burn clean fuel, and leave our world a better place for our children and their children.

Despite the challenges, there are almost no issues that cannot be solved if China and the United States work together, harnessing our commonalities, creativity and ingenuity. Together, we are finding solutions to problems that face not only our two great countries, but indeed the world.

Here in China, we are proud to represent the millions of Chinese Americans and Americans of all heritages who appreciate the values of family and community that the Chinese new year embodies so well. Mona and I wish each and every one of you much vigor in the Year of the Dragon, and happy reunions with the whole family.

Xin nin kui le! Gong He Fat Choi! Happy Year of the Dragon!

Gary F. Locke, US ambassador to China

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/20/2012 page9)

The charm of Spring Festival

Even though I belong to the post-1980 generation and work in a big city, I value Spring Festival very much because it's the time of the year when I can stay home and enjoy a family union. I wish I could stay longer with my family. And I wish my and all parents good health and happiness in the Year of the Dragon.

Chris Wang, via e-mail

Vital to take care of family

China's gift-giving culture, especially during Spring Festival, is boon for the market. But taking better care of our families and friends is more important than giving gifts to them.

Zhu Zhu, via e-mail

It remains important

Ten years ago while traveling back home by a train for Spring Festival for the first time, I was so homesick that I burst into tears thinking of my parents and grandma. I was a freshman then and determined to establish myself in Beijing. After spending years in the familiar but at the same time strange metropolis, I am still struggling for success, not necessarily on the economic front, and the thought of returning home is still strong before Spring Festival.

Xiao Chen, via e-mail

Be eco-friendly with gifts

One of the punishment during Spring Festival is unwrap gifts, especially if they are over-packaged with decorative layers. One has to peel off layer after layer, if not layers, of silk flowers, ribbon bows, wrapping paper, gift bags and other unnecessary vanity items. This is a punishment for those who wrap the gifts, too.

Needless to say, the decorative wrappings are an unnecessary waste. So instead of just throwing them away, we should reuse them to wrap other gifts or redesign them for other use to help protect the environment. But we would be really eco-friendly if we used minimum gift-wraps in the first place. After all, more is not necessarily better, and less can be more.

Lao Banniang, via e-mail

(China Daily 01/20/2012 page9)

The message that the free healthcare enjoyed by civil servants will be incorporated into the general employees' medical insurance system is the first step in reform of public welfare.

The medical costs of all 450,000 of the civil servants in the Beijing municipal government and its affiliated county and district governments have already been merged into employees' medical insurance since Jan 1, and the change will be extended to civil servants in the central government next year.

The move shows the authority's determination and courage to kick-start a reform that may not be to its own benefit, and the public is looking forward to seeing more local authorities at various levels following its lead.

The reason people have been calling for reform of the medical insurance system is there is a marked discrepancy between the reimbursement levels enjoyed by civil servants and those of other citizens.

However, the change does little to make the system more equitable as it means civil servants now have more hospitals to choose from than before and they can get exclusive supplementary insurance, which means that their medical service level will still remain much higher than that of other citizens.

Medical insurance is a basic public service provided by the State. Any reform in this field should be conducive to realizing public service equalization, instead of creating new inequalities.

Greater efforts are needed to lower the medical service reimbursement level for civil servants and to increase that of other employees.

(China Daily 01/19/2012 page8)

Minister Wang Chen of the State Council Information Office made a sensible point on Wednesday when he said spokespersons of government and Communist Party of China offices should be true to their name and be practical channels for communication and interaction with the public.

Thanks to the strenuous push from his institution, most Party and government offices at or above the provincial level now have a spokesperson in place. And, many offices have launched their own micro blogs, some of which have attracted massive followings.

This has been a positive change from the previous tendency toward secrecy and reluctance to share information, and is consistent with the government's commitment to transparency.

As Wang reiterated at the routine annual briefing, it is a practical move to satisfy people's right to know, participate, express, and supervise.

But as Wang conceded, the situation still remains less than satisfactory. Spokespersons' frequent failures to properly address inquiries about matters of significant public concern have raised suspicions about the real enthusiasm for transparency.

However, Wang attributed this to some spokespersons' inability and unwillingness to deal with sensitive topics, and vowed to solve the problem through better training.

But while such training may be of great help to would-be spokespersons, it should emphasize answering questions as honestly as possible rather than teaching hide-and-seek techniques.

The Ministry of Railways' awkward and heavily criticized handling of information following the fatal July 23 bullet train accident is a good example of how poorly released information can result in a public relations disaster.

Public anger was directed at the ministry not just because its spokesperson provided information that was later confirmed untrue, but also because the ministry was perceived to be trying to muddy the waters.

In many cases though, ignorance rather than dishonesty appears to be a more common cause of a spokesperson's failure to come up with acceptable answers. In some cases, they have proved to be genuinely unaware of what has happened.

This cannot but lead people to wonder why some spokespersons have been installed if they too are being kept in the dark. This in turn raises doubts about the sincerity of the claims of allegiance to transparency.

Ill-informed spokespersons expose a worrisome lack of internal communication within and across institutions, which is indispensable for true transparency.

(China Daily 01/19/2012 page8)

You've just been handed a $2,000-year-end bonus by your boss. Since your monthly salary is only $1,000, you are thrilled, right? Well, maybe not. Let's say that last year your boss gave you $3,000 and in addition you learn that everyone else on your floor this year got the same $2,000-bonus you did, including that guy who has only been with the company nine months and the woman who calls in sick nearly every other Friday.

Now let's change the scenario a bit. Same boss, same company. This time you get only a $1,800 as bonus. But that's $600 more than you got last year and now you learn your boss has distributed bonuses commensurate with employees' work output. It turns out that your bonus is larger than anyone else's in your department and the boss has actually given you two checks - one of $1,500 as bonus and the second of $300 as cash gift for "hard work" with a personal hand-written note of appreciation.

Most of us probably recognize right away that although the hypothetical "you" in our first example actually got more money from the boss, "you" number 2 is likely to be happier with the bonus situation. Psychology suggests a couple of reasons why.

Our gratitude for a pleasing situation, such as getting a year-end bonus, depends to a large extent upon our prior experiences. If we have received larger bonuses in the past, we are likely to be somewhat miffed if our year-end bonus doesn't hit the same mark. Once established as a work expectation, the bonus is no longer considered so much a gift, as something we are owed. When that "debt" leaves us dry, we are disappointed.

Consider an analogous situation in the United States where tipping in restaurants is the norm. Fifteen percent of the bill is considered an average tip, whereas some people will leave tips of 20 percent or more. While few restaurants require patrons to leave a tip, you can expect surly stares from waiters and waitresses if you leave them a tip of 10 percent or less. In other words, although you are giving someone money to which he or she is not entitled, that person is likely to be upset with you even if he/she has done only an average job of serving you, because your tip failed to meet his/her expectations.

Another factor that influences our pleasure with the bonus is what amount of money our colleagues receive. We measure our own satisfaction to a certain extent by comparing our situation with others around us. So, for example, the NBA player who gets a $5-million signing bonus may be disappointed when he learns that his teammate got $10 million.

If our year-end bonus is the same as everyone else's - the shirker who spends most of his days playing online video games, for example - we are likely to feel under-appreciated.

Psychologically, therefore, the happiness we experience at receiving a year-end bonus will be influenced by our past experiences and our comparison to others around us.

The other side of the coin is how best should management treat year-end bonuses. Obviously, those bonuses have become an expectation in many industries but management needs to make clear to employees that bonuses are rewards for jobs done well, not free gifts to which everyone is entitled.

In that vein, one of the drawbacks of year-end bonuses is that it is difficult to tie them in with performance. An elementary principle of psychology is reinforcement, in which a person is rewarded for doing something well and thereby is encouraged to do it again. The problem is that reinforcement needs to be fairly contemporaneous with an act to be effective. So, if an employee worked lots of overtime on an important project in June without otherwise being compensated and the boss wants to acknowledge the employee's work and encourage those types of efforts, it is better if the bonus/reinforcement (and it doesn't have to be just cash) is delivered in June or July.

Workers and management both should view bonuses from a larger perspective. Bonuses are meant to reward good work, encourage future efforts, build company loyalty and improve the overall esprit de corps. If a company has had a down year though, or if the entire industry is facing problems, the management should make clear why bonuses are small or absent. If, on the other hand, times are good, workers should be rewarded accordingly.

Finally, companies should consider replacing single year-end bonuses with less substantial intermittent performance rewards. The performance rewards would be spread out over the year and therefore be more closely tied-in with specific things employees do that help the company. In that way, employees would equate their hard work with the compensation they receive for doing it.

The author is an adjunct professor of law in Temple University/Tsinghua University LLM program and teaches college psychology at TOPU in Beijing.

(China Daily 01/19/2012 page9)

'We won!" Ma Ying-jeou, the incumbent Taiwan leader, shouted to cheer up his supporters in the pouring evening rain in Taipei on Jan 14, 2012. With jubilance, Ma summed up the 2012 election: "This is not my personal victory, the victory belongs to all Taiwan people."

If one follows this line of thought further, one "would say" that the victory belongs to the Chinese people on both sides of the Taiwan Straits. Then one "must say" that the victory belongs also to the Chinese mainland's successful cross-Straits peaceful development policy and measures. Finally, one "can say" that the successes of cross-Straits relations would exemplify what China has done and can do for its peaceful development with people and nations across the world.

Here are the reasons why one "would say", "must say" and "can say" the above about Ma's victory:

First, to say that the election victory belongs to Chinese on both sides is to underscore the fact that, after six decades of separation, people need healing; they need to be back together economically, culturally, socially, and their areas of togetherness need to keep expanding. It is as if each side is beginning to find its missing half to form a new, complete whole.

The reason why one "would say" that about people's need for togetherness is best conveyed by a metaphor. The metaphor is the "Landscape United" art exhibition at the Taipei Palace Museum in the summer of 2011.

The focus of the exhibition was the famous painting, "Dwelling in the Fuchun Mountains," by the great Yuan Dynasty (1271-1368) ink-and-brush landscape artist Huang Gongwang (1269-1354). The painting was damaged in a fire, restored into two pieces of different lengths, and physically separated for more than 360 years because they were owned by different collectors. For 62 years since 1949 the shorter piece was a treasured collection at the Zhejiang Provincial Museum in Hangzhou and the longer at the Palace Museum in Taipei.

In 2010 Premier Wen Jiabao initiated the reunion of this Chinese national treasure; the reunion took place a year later in Taipei. Premier Wen said: "If the painting can be brought together, so can our people."

Second, there are several significant indicators why one "must say" that the Taiwan election victory also belongs to the mainland's successful policy for cross-Straits peaceful development. Two indicators show how the mainland's peaceful development policy is reflected in the practical conduct of the election process.

The first indicator is the fact that all three candidates for the Taiwan election presented their credentials for managing the cross-Straits affairs as their key qualification to lead Taiwan. As it turned out, the candidate with the highest such qualification to manage cross-Straits affairs, Ma, won the re-election. This is because, as the Taiwan Affairs Office of the State Council stated in Beijing: "The peaceful development of cross-Straits relations has been the right road and has won the support of the majority of Taiwan compatriots."

Here are the candidates' qualifications. Ma Ying-jeou, candidate for the ruling Kuomintang (KMT), showcased his signature policy of closer economic ties with the mainland during the past three and half years. His policy resulted in the signing of the Economic Cooperation Framework Agreement with the mainland to benefit the island's 23 million people.

Tsai Ing-wen, candidate for the main opposition Democratic Progressive Party (DPP), was the least prepared. That was mainly because of her pro-independent sentiment and her rejection of the 1992 Consensus, for which she offered as substitute an ambiguous and vacuous Taiwan Consensus. Yet Tsai managed to present a cross-Straits credential of sorts, which signifies that far from ignoring the reality of cross-Straits relations even the DPP has to deal with it.

Thus, on a positive note, Tsai cited her 1998 visit to the mainland with a delegation, and listed her past cross-Straits contributions as chairwoman of Taiwan's Mainland Affairs Council during the Chen Shui-bian administration, which had a clear independence agenda.

James Soong, candidate for the People's First Party (PFP), referred to his rich political and administrative experience, and especially to his "official" familiarity with the mainland. He suggested that, if elected, he would personally bring the other two candidates to visit the mainland.

The second indicator that the mainland's cross-Straits peaceful development policy contributed to the election victory is the fact that has won more support. The Consensus, reached by the two sides in 1992 in Hong Kong, is one in which each side holds its own interpretation of the one-China principle. The key concept here is the invariant one-China principle.

The 1992 Consensus, fully supported by the mainland, has therefore been the foundation of cross-Straits successes of the past four years. The election victory simply confirms that the Consensus will be the foundation of all aspects of future cross-Straits peaceful development.

The strongest affirmation for the Consensus came unexpectedly at the last minute from Taiwan business leaders, who are typically shy to take sides openly on political matters. This time, all of them came out voluntarily in support of the 1992 Consensus. Significantly, some of these leaders had supported the DPP in the past. Even Douglas H. Paal, a former US diplomat, spoke as a scholar in Taipei in favor of the 1992 Consensus.

Post-election analysts have attributed the 1992 Consensus as a key reason for Ma's re-election. Others see Tsai's rejection of the 1992 Consensus as the cause of her defeat.

Finally, the success of the cross-Straits peaceful development can serve as a mirror across the world for China's peaceful development. The common denominator here is the State Council's 2011 white paper, "China's Peaceful Development". The key and inseparable words for such development are "cooperation" and "trust". The practice of cooperation develops trust, and trust engenders further and deeper cooperation. Out of that comes China's non-zero-sum win-win relationship with people and nations around the world.

The author is a professor of Western and Chinese philosophy at Montclair State University in New Jersey, US.

(China Daily 01/19/2012 page9)

Further reform of economic and social institutions needed to create greater equality and ensure sustainable development

The "Southern Tour Speeches" by former leader Deng Xiaoping 20 years ago marked a turning point in the history of China's reform and opening-up.

During his inspection tour to southern Wuchang, Shenzhen, Zhuhai, and Shanghai from Jan 18 to Feb 21, 1992, Deng made a series of speeches targeted at misgivings and confusions about China's reform and development and put forward new viewpoints on some crucial issues. These remarks came at a time when China's reform and opening-up was at a critical crossroads and mapped out the main goals and directions for its further development in the years ahead.

After 1989, there was increasing debate within China's ideological and academic circles about whether the country should carry forward reforms and recognize its fledgling market economy and whether a pro-socialism or a pro-capitalism approach should be adopted if reforms continued.

"Without reform and opening-up, there will be no hope for China, and the country and the ruling Party will perish," Deng warned. "The country should allow some regions and people to get rich first and then gradually push for common prosperity," he said.

It is due to the market economy-oriented reforms that China has achieved its rapid and sustained economic development over the past 20 years and acquired for itself an increasingly important position in the world's economic configuration.

But China is now facing some outstanding problems in its push for common prosperity, ranging from growing imbalances between investment and consumption, which poses as a severe challenge to the country's sustainable development and economic transformation, to the ever-widening gap between the rich and poor. Power abuse and corruption also remain a long-standing intractable issue. Thus, the country's decision-makers should make an in-depth study of the country's present contradictions and problems in a bid to achieve a new reform and opening-up stage.

Deng's confirmation of reforms aimed at facilitating the establishment of a socialist market economy released a vitality that has propelled the fast and long-term development of the country. Deng's remarks enabled the country to embark on a socialist market economic road and it has taken the perfection of such a market as its supreme target.

The reform and opening-up policy has enabled some regions and some people to get rich earlier than others, which has led to powerful groups with vested interests. To maintain their established interests, these groups have become a barrier to further reforms, which has resulted in the interests of some middle and low-income people being marginalized, fermenting social discontent.

China should wholeheartedly endeavor to overcome this barrier so that it can realize Deng's vision of common prosperity . This will help the fast-growing nation release its huge consumption potential and lay a solid foundation for its sustainable and rapid development in the years ahead.

China's economic and social development now requires a social transformation and reforms targeted at equality and sustainable development. To facilitate this, the country should embrace a consumption-driven, green and market-regulated development model, prioritize increasing people's wealth and push for government transformation. To this end, China should push forward overall reforms of its economic and social institutions as well as governance changes during the 12th Five-Year Plan (2011-15) period. While giving the market a full role in the distribution of resources, the country should step up the establishment of a public service system and a service-oriented government. A systematic foundation should also be laid for the expansion of domestic demand and the establishment of social justice and sustainable development.

The author is director of the Hainan-based China Institute for Reform and Development.

(China Daily 01/19/2012 page8)

India and China are competitors, but their difficulties in achieving long-term cooperation reflect lingering attitudes rather than conflicting strategic goals. In the emerging multi-polar world, major powers will have to come to some sort of accommodation with each other, shaped by three strategic shifts.

First, a significant shift of power is taking place from the United States to Asia as the driver of global politics. The US can no longer maintain its hegemony alone and it is therefore encouraging India to join it in securing a military balance of power in Asia. But any such treaty or understanding would be implicitly against China.

India last month rejected any notion of joining a trilateral security pact with the United States and Australia.

The policy issue before India is clear: will it work with China to decisively shape the future of Asia and become a major participant in world politics, or, will it partner with the US to contain China, so that it can become a regional power.

The unresolved question for military strategists in India is China's intentions.

Understanding the second major strategic shift now taking place in the world provides one answer to this question. The US has correctly framed the issue, by recognizing that countries are gaining influence now "less because of the size of their armies than because of the growth of their economies".

India's growth has differed from China's and the rest of Asia in its reliance on domestic demand and growth in services rather than labor-intensive manufacturing.

China is now India's biggest trading partner. Trade and business ties between China and India have increased dramatically from around $5 billion in 2002 to more than $60 billion in 2010, and the aim is to boost trade over the next five years to $100 billion annually.

The most striking difference between India and China is the demographic dividend, as a surge in Indian youth coincides with the graying of China. While India's workforce will increase by 110 million over the next decade, China's will increase by less than 20 million. This could push India's growth rate ahead of China's.

The drivers of competition between the two countries will therefore be shaped by water and energy rather than by efforts to expand trade. India has successful experience with the Indus Waters Treaty with Pakistan. The perspective that energy is a zero-sum game is a Western construct, as they are profligate users of energy and see it as an integral part of their way of life. India and China on the other hand are taking steps to curb their energy consumption. The sharing of natural resources can be managed by modifying growth pathways to provide the same level of service.

No doubt both India and China want to secure their energy supplies, and since the oil supplies for both cross the Indian Ocean the answer lies in developing a joint strategic doctrine for this zone.

The third strategic shift is taking place within the international institutions, where India and China have begun to coordinate their actions on climate change and trade negotiations, the restructuring of global economic institutions and opposition to military interventions. The foreign policy challenge for both countries is to work together to build networks of institutions and relationships that will support a new global order.

There is a need to review threat perceptions, security challenges and new opportunities by integrating the military, economic and multilateral spheres, because they interact with each other, and can no longer be considered in isolation. The boundary issue is moving towards an agreed framework, and the two countries must now develop a strategic partnership to realize the Asian century.

The author is a visiting professor at the University of International Business and Economics in Beijing.

(China Daily 01/19/2012 page8)

Though Spring Festival is traditionally a time for family reunions, it has become a "festival of etiquette" and shifted focus to public relations.

With the elevation of our economic and living standards, consumerism has become a culture resulting in people's anxiety and making "face culture" an important bogey for consumerism. Since the potential influence of traditional courtesy cannot be neglected, some outdated conventions combine "emotionally" with face and image, enslaving people because they cannot treat it rationally.

Perhaps many people become "slaves to holidays" because they have allowed pure and simple folk customs, etiquette and culture to be corrupted by a vulgar and utilitarian reality.

But being an important humanistic tradition of the Chinese nation and people, Spring Festival will exist for ever.

So we should find ways to pass down the tradition in the best way possible to later generations and make it easier for them to spend it in the best civilized and relaxed manner.

We should make efforts to free Spring Festival of the many bad habits that have now come to be attached to it.

Only by maintaining a civil and thrifty tradition can the festival be made more humanistic and prevent people's trip back home from becoming "a tough cultural journey".

(China Daily 01/19/2012 page9)

The popularity of online bookstores is threatening the survival of many private small- and medium-sized bookshops in Chinese cities. Apart from a campaign, "saving physical stores", launched by public figures, many Chinese People's Political Consultative Conference National Committee members have also urged the government to take steps to ensure that bookstores stop pulling down their shutters regularly, says an article in Changjiang Daily. Excerpts:

Unlike shops selling other goods, physical bookstores play the important social role of passing down knowledge and culture to younger generations.

Besides reducing tax, the government should also take other steps to support and encourage the development of such bookstores.

Online bookshops are thriving because they offer low prices and delivery service. People can buy almost any book sitting at home. No wonder, even people who loved visiting bookstores to browse through their choicest titles before buying the ones they liked the most have become used to purchasing books online.

Physical bookstores have their advantages. For example, they offer the choice of feeling a real book rather than just the chance to see the cover and read a few introductory lines.

But they can also offer lower prices, sales promotions and better service, and organize readers' club and other activities to attract more booklovers. And a citywide delivery service could make it more convenient for readers to buy books from them.

Some private bookstores could also establish a sales alliance to accept joint orders to reduce costs and issue joint-name membership to increase their influence and counterbalance the advantages of online bookstores.

(China Daily 01/19/2012 page9)

Comment on "Consumers, how can I make you trust me?" (China Daily website, Jan 12)

The government should take more measures to restore customers' confidence. It should improve laws to ensure that illegal sales practices are punished and consumers' rights are protected. It should also regulate laws to eliminate false information in advertisements.

Moreover, businesspeople who offer bribes and government officials who accept them both should get severe punishment. Government officials involved in abuse of power and other types of corrupt practices should be dealt with severely, too. Besides, the government should also strengthen the administration to guarantee that new laws are implemented properly.

Manman, on China Daily website

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/19/2012 page9)

Vice-Premier Li Keqiang's visit to Ningxia Hui autonomous region this week highlighted the importance of timely taking stock of our efforts to build a better-off society in an all-around way.

If the country is to meet its major targets for economic and social development during the 12th Five-Year Plan period (2011-2015), Chinese policymakers must pay close attention to improving people's living conditions, especially those of less privileged residents.

During most of previous five-year plans, the Chinese government set many desirable goals for raising people's living standards while stressing the need to continue the country's long-term growth story.

But, more often than not, while the country has successfully beaten even the most optimistic forecasts about its economic performance, it has left a lot to be desired when it comes to its goals for social development.

After the world's largest developing country kick-started its phenomenal growth in the late 1970s, the wisdom of prioritizing economic growth before everything else for so long may be open to question.

But it is now a consensus among Chinese leaders that the priority for policymaking should be to ensure that all citizens enjoy a better life.

Vice-Premier Li has driven home this message by carefully studying how people's basic needs are met in the country's relatively less developed area.

Such a high-level visit before the all-important Spring Festival is meant not only to show that the central authorities care about residents in the nation's poorer areas.

More importantly, it is also a fact-finding exchange between top leaders and the public about the progress and effects of major projects like government-subsidized affordable housing and medical reforms.

To ensure that implementation of the 12th Five-YearPlan strengthens the foundations for the making of a better-off society in an all-around way, Chinese policymakers should be ready to engage in such fact-finding exchanges more frequently and be quick to respond to any problems that the visits bring to their attention.

(China Daily 01/18/2012 page8)

The resilient growth of the Chinese economy in 2011 should not be that surprising given the formidable momentum produced by the country's accelerating urbanization.

Instead, what impresses us most about the past year is the early and vital progress China has achieved in rebalancing its economy domestically and internationally.

The latest statistics show that the world's second largest economy expanded by 9.2 percent last year in spite of the global turbulence and domestic price hikes.

Compared to its own record of more than three decades of nearly double-digit growth, the new growth figure does not look too exciting. Yet, from a global perspective, the performance of the Chinese economy remains the envy of most developed countries, which are plagued by sovereign debt crises and stubbornly high employment.

Chinese policymakers certainly deserve credit for their resolute efforts to battle surging inflation. The country's consumer inflation hit a 37-month high of 6.5 percent last July before it was brought down to 4.1 percent in December.

Those people who expressed concern that China's tightening measures to fight inflation would lead to a drastic slowdown surely did not expect 9.2-percent overall growth.

They underestimated the long-term driving force that the country's ongoing urbanization provides.

More importantly, they failed to grasp the far-reaching significance of China's progress in rebalancing its growth pattern.

The country is reducing its dependence on external demand and boosting domestic consumption as a key engine for sustainable growth. China's trade surplus fell to $155 billion last year, down 14.5 percent from a year earlier, falling to an estimated 2.2 percent of GDP in 2011, compared with 3.1 percent in 2010 and a high of 7.5 percent in 2007.

The country has also managed to, slightly but steadily, rein in the widening income gap between rural and urban residents, one of the most difficult problems that the country must overcome to sustain its long-term growth story.

It is particularly reassuring to see that the nominal income growth of rural residents increased by 17.9 percent, outpacing that of urban residents, to narrow the urban-rural income ratio from 3.23:1 in 2010 to 3.13:1 in 2011.

The scale of China's rebalancing may appear small in terms of statistics. But in reality, it could mean a sea change in many aspects of our social and economic development.

(China Daily 01/18/2012 page8)

Eurozone should encourage support of other countries by removing their artificial trade barriers and increasing access

Amid protracted political infighting among the eurozone countries on how to overcome their debt crisis, Standard & Poor's (S&P) recently cut the credit ratings of nine eurozone members, including France and Austria, which had long enjoyed the top AAA credit rating.

The downgrades have irked eurozone leaders, as they come at a time when debt-laden EU countries have been struggling to find solutions to their financial distress. S&P defended its action on Saturday, saying the region's leaders have not done enough to solve their debt crisis and that France and Germany should make greater efforts to reduce the growing risk of debt defaults in the region. It is a reminder of the warnings issued by Robert Zoellick, president of the World Bank and Christine Lagarde, head of the International Monetary Fund (IMF) that the world economy is entering a new danger zone and that all countries should make combined efforts to promote economic growth and stability.

Eurozone governments, including France and Germany, have acknowledged the severity of the sovereign debt crisis in Europe, and launched the European Financial Stability Facility (EFSF) in a bid to ensure the stability of the euro and prevent the crisis from escalating. The EFSF is essentially guaranteed and low-cost bailouts by the eurozone nations that enjoy a triple-A credit rating to members with lower ratings or those that lack an independent financing capability.

However, following the S&P downgrades, the EFSF's funds are expected to decline from the original 440 billion euros ($560 billion) to 260 billion euros. The credit rating downgrades have undermined the EFSF's ability to build confidence, increased the financing costs for debt-laden EU countries and sparked panicked asset reorganizations by European banks. Following the move, regional banks are likely to reduce their holdings of the government debts of France and Austria, and increase the demand on the US dollar and Japanese yen, which will possibly result in new fluctuations in the global capital market. It is believed that once the risk of debt defaults bites Italy and other major regional economies, the magnitude of the eurozone debt crisis will exceed that of the 1997 financial crisis in East Asia, which will be a severe drag on the still sluggish global economic recovery.

The ongoing fiscal austerity efforts made by eurozone countries and their declining public investment and job creation capabilities have undercut the possibility for the IMF and overseas agencies to offer assistance to the badly battered eurozone nations. To forestall a fluidity crisis, the European Central Bank (ECB) should unwaveringly inject more fluidity into the region's financial agencies. Such a practice will help avoid a fluidity crisis and the selling of assets by financial agencies, a move that would expedite a financial collapse and the eruption of a full-blown crisis.

Eurozone countries should also accelerate the launch of the European Stability Mechanism, a permanent rescue-funding program. The establishment of a roughly 500 billion euros-worth funding pool under the program, together with the EFSF, funds raised by non-governmental organizations and the IMF bailouts, will come to the aid of the debt-laden eurozone nations and help prevent a possible collapse.

Besides, eurozone countries should also open investment access to other countries and lower their market admission thresholds in a bid to acquire more trade trust and funding support from countries outside the continent. At a time when they are bogged down in the quagmire of a lingering debt crisis, EU countries' artificial trade barriers are hindering efforts by other countries to help them solve crises.

Given that the EU remains the largest trade partner of China, the eruption of a fluidity crisis in the eurozone would have a negative impact on China in its endeavor to adjust its foreign reserve structure and promote the marketization of the yuan's exchange rate. It would also be unfavorable to China's ongoing integration into the global economic system. A fluidity crisis in eurozone nations would affect the "go global" strategy adopted by China's enterprises and its domestic financial stability. But if no fluidity crisis occurs in eurozone nations, China should unwaveringly strengthen trade and investment exchanges with the EU, and work more closely with the bloc to push for the establishment of a better international financial and monetary regime.

The author is vice-dean of the School of Economics at Fudan University.

(China Daily 01/18/2012 page8)

"We are the 99 percent" is the slogan of the "Occupy Wall Street" protesters who want to express their discontent with what they view as the greed and corruption of the wealthiest 1 percent of the population in the United States.

According to a report by the US Office of Management and Budget released on Oct 2011, from 1979 to 2007 the income of the wealthiest 1 percent of the population in the US increased 275 percent, while the income of the poorest 20 percent of the population increased by only 18 percent. And while the gap between the rich and the poor is growing increasingly wider, the US has a stubbornly high unemployment rate as a result of the financial crisis, which has hit lower-income groups and young job seekers the hardest.

Besides these economic factors, the movement, which combines liberalism, idealism, anarchism and socialism as a new "occupy-ism", has also arisen out of the domestic contradictions in the US.

The ever-expanding anti-terrorism war launched after the Sept 11, 2001 attacks not only drained the fiscal surplus that accumulated during the Clinton administration, but also increased government supervision of society. The authorities restrict citizens' freedom of expression, but ignore their "exploitation" by banks and the rich, which has intensified the public's dissatisfaction with the government.

Despite the movement corresponding more closely with the Democratic Party's political program and President Barack Obama's cautious support for the movement, the protestors argue his administration has failed to meet the public's expectations for domestic reforms, and they are critical of a political system, which allowed the Republican Party to almost bring the US government to a standstill when it joined hands with the extremely conservative Tea Party to oppose Obama's policies on medical insurance, immigration, and the budget. The Republican Party has sought to undermine the influence of the movement through confrontation and by putting pressure on organizations and individuals that sympathize with the protesters.

And although the general appeal of the Occupy Wall Street movement is closer to the political policies of the Democratic Party, it doesn't mean the movement will help improve Obama's chances of being re-elected. It is the huge number of neutral voters that will determine the election result. Obama can only show cautious support to the protesters or risk alienating this key group of voters.

This is not only because the large middle class in the US has adopted a wait-and-see attitude toward the movement or is indifferent to it, but also because the core value in the US is freedom rather than equality, and the most prized freedom in the US is the freedom to make money. The prevailing viewpoint is that participants in he movement should endeavor to change their personal circumstances rather than resorting to complaining on the street. The primary issue that will influence the election is economic recovery, which has no direct connection with Occupy Wall Street movement.

Although more than 1,000 cities in the US have joined the movement and it has now spread all over the world, the number of people that participate in the movement is limited compared to some previous anti-war movements and it has failed to produce any tangible changes.

The author is a researcher with the Institute of American Studies under the Chinese Academy of Social Sciences.

(China Daily 01/18/2012 page8)

After two intense days of parleys between State Councillor Dai Bingguo and India's National Security Adviser Shivshankar Menon in New Delhi on Tuesday, China and India signed a breakthrough agreement to set up a joint border management mechanism seeking to prevent occasional misperceptions from flaring up.

The proposal to set up the mechanism was initiated during Premier Wen Jiabao's visit to New Delhi in December 2010. Now, apart from providing the much-needed momentum to the rather lackadaisical special representatives' (SR) talks, the mechanism is also expected to boost Sino-Indian mutual trust and generate atmospherics for delineating their border on the map followed by demarcating it on the ground.

More specifically, the mechanism aims to facilitate "real-time" contacts in case of allegations. But if viewed from a narrow perspective, even the innovative mechanism has its limitations.

First, since officials in New Delhi and Beijing will head the mechanism, how they will come to know the local situation immediately remains a challenge.

Second, civilian bureaucrats will be heading these meetings while allegations are made by their militaries.

Third, the mechanism envisages regular as well as emergency meetings involving both countries' ministries of defense, interior and foreign affairs along with representatives from their armies, paramilitary forces and intelligence agencies. This could make the mechanism inefficient if not altogether ineffective.

Finally, unlike the "hotline" between the Chinese premier and the Indian prime minister that was set up in 2010, the border mechanism will not be able to provide instantaneous relief; it will only set in motion an official process for such a relief. The outcome of this process, of course, will depend on the general spirit of mutual understanding and accommodation. It is in this respect that the 15th round of SR talks makes a critical contribution to Sino-Indian ties.

Therefore, if viewed from the broader perspective, that is, as part of the overall positive spirit of the 15th round of SR talks, the mechanism appears far more promising. Like earlier border talks, the SR talks too have become a generic but leading forum for discussing all topical issues and initiatives. The focus thus remains on building mutual trust and confidence. In this context the 15th round of SR talks was especially significant for at least a couple of reasons.

First, it was held in the backdrop of various contentious issues shadowing bilateral ties over the past several months. Second, Dai Bingguo and Shivshankar Menon both have been interacting with each other for several years and have developed a warm and comfortable style of negotiating. The positive impact of the 15th round of SR talks, therefore, goes much beyond what meets the eye. Both countries' special representatives have projected how China and India have learnt lessons from their earlier fracas and a clear momentum is visible in their reformulations which seek to redefine old paradigms.

Last week, speaking at the Chinese embassy in New Delhi, Menon described the boundary question as "difficult", but he appeared optimistic on the "settlement" (not resolution) issue and emphasized that bilateral negotiations were already "in the second stage of the three-stage process of agreeing principles, a framework and finally a boundary line".

But this seems to be a deviation from the earlier known three stages of (a) guiding principles and general parameters agreement of April 2006, (b) a Framework Agreement, anticipated anytime from the November 2006 and (c) sharing of maps and delineation of boundary on a mutually agreed map before demarcating boundaries on the ground.

Likewise, Dai Bingguo began his three-day visit to New Delhi on an extremely positive note as if Sino-Indian ties had no difficulties. In a signed article in The Hindu, one of India's major English language newspapers, on Monday, he underlined the new positive tone saying that he was happy to note that "since the beginning of the new century, the China-India Strategic and Cooperative Partnership for Peace and Prosperity has continued to grow rapidly (and) China-India relations have entered a fast track of growth".

It is in this optimistic tenor that the countries' special representatives have projected that their deliberations are not restricted to bilateral ties, but also involve their worldview on various regional and global issues including the likely impact of the continuing global economic crisis on China and India, their future joint strategies on climate change negotiations and especially on the summit of BRICS (Brazil, Russia, India, China and South Africa), scheduled for March in New Delhi.

The attempt to locate Sino-Indian interactions in the larger canvass of their inordinate responsibilities to jointly contribute to regional and global trends and discourses is expected to fundamentally change the tenor of bilateral ties.

The author is a professor of international studies at Jawaharlal Nehru University, New Delhi.

(China Daily 01/18/2012 page9)

The deteriorating global economic outlook is increasing health experts' worries over the impact of the economic crisis on people's health. As the World Health Organization stated in 2009: "It is not yet clear what the current financial crisis will mean for low-income and emerging economies, but many predictions are highly pessimistic."

In low-income countries, economic crises lead to reduction in demand for imports - including medicines and medical supplies and technology - tighter access to capital and falling remittances from family members working overseas. In addition, there is less government revenue to finance health and social services.

A recent article in The Lancet, the world's leading general medical journal, highlights such effects in Greece, one of the European countries most affected by the ongoing global economic crisis. As a result, there has been a significant increase in unemployment, from 6.6 percent in May 2008 to 16.6 percent in May 2011. Even more troublesome is that unemployment among the youth in the same period increased from 18.6 percent to 40.1 percent.

Several studies have shown that unemployment increases the risk of both psychiatric and somatic disorders. For example, a strong correlation has been found between job loss and clinical and sub-clinical depression, substance abuse, anxiety and antisocial behavior. Also, several studies have shown that prolonged unemployment increases mortality rates.

In Greece, the rate of suicide increased by 17 percent from 2007 to 2009. During the same period, homicides and theft cases almost doubled. And in 2010, about 25 percent of the people who called a national suicide helpline complained of financial difficulties. The inability to pay huge amounts of personal debts may be one of the reasons why the number of suicides has increased - it rose a whopping 40 percent in the first six months of 2011 compared to the same period in 2010.

Besides, a surge in intravenous drug users could explain why HIV infections have increased more than 1,000 percent among them. Apart from intravenous drug use, prostitution and unsafe sex are also responsible for the increase in HIV infections, estimated to be 52 percent higher in 2011 than in 2010.

Although in Greece patients with social insurance can visit general practitioners free of charge or get medical treatment at outpatient clinics for a very low fee, fewer people visited them in 2009 compared to 2007. At the same time, there was a 24 percent increase in admissions to public hospitals in 2010 compared to 2009, while admission to private hospitals declined by 25-30 percent. This may be the result of a 40 percent cut in hospital budgets leading to understaffing and occasional shortages of medicines and medical supplies.

Another example of the effect of the economic crisis in Greece on vulnerable groups is the increased use of street clinics run by NGOs, such as the Greek chapter of Mdecins du Monde, which have reported that before the crisis only 3-4 percent people were seeking medical care from their street clinics but now the figure is 30 percent.

That people's health has worsened because of the crisis is demonstrated by the number of Greeks who consider their health to be "bad" or "very bad", which has increased by 14 percent from 2007 to 2009. To make matters worse, one-third of the country's outreach programs have been dropped because of budget cuts in 2009 and 2010.

By many accounts, the public healthcare system of Greece is riddled with corruption and inefficiency. Oftentimes, patients offer doctors informal payments to receive medical treatment, particularly when they are not covered by their social insurance fund. And hospitals frequently face shortages of materials and equipment.

The situation in Greece could be a harbinger of what may happen - or is happening - in countries with similar social and healthcare systems going through similarly difficult economic situations. The onus, therefore, is upon the governments of such countries to rationalize resources, increase efficiency and protect their most valuable asset: the health of their people.

The author is an international public health consultant.

(China Daily 01/18/2012 page9)

Movie tickets in China are among the highest in the world. In the United States, for example, the average price of a ticket in 2009 was $7.5, which is equivalent to the minimum hourly wages of an ordinary employee.

In India, where the film industry is rather developed, the lowest ticket price is about 7 yuan ($1.1), which helps attract audience from all sections of society and has helped the Indian film industry prosper.

Offering attractive ticket prices is the most important way to bridge the distance between films and the general people. The box office cash registers would not stop rolling if every Chinese saw even one film a year.

Therefore, the film market should follow the motto of "general consumption" and make good quality films at the least cost.

At present, the Chinese film industry seems to be caught in a misunderstanding that filmmakers can make big profits by investing huge amounts to make a film and price their tickets high. This has prompted them to neglect the quality of the movies and the audience's taste. Such an overpowering sellers' market cannot bring prosperity to the film industry.

Besides, more people are buying film tickets at discounts of up to 60 percent because the cinemas cannot sell the high-priced tickets. The film industry, therefore, needs a cultural transformation to forget that "profit matters the most" and has to attract new talents.

(China Daily 01/18/2012 page9)

To make it easier for migrant workers to travel back home for Spring Festival, the library has offered free, safe and eco-friendly access to train ticket booking. The library staff members have given free training lessons on basic Internet knowledge and skills to migrant workers so that they can operate a computer to book tickets online.

When we speak of libraries, the first thing that comes to mind is a place from where you can borrow books and magazines or read online. By providing this additional service to migrant workers, the Shaanxi Library is doing a truly noble job.

The online ticket booking system saves people a lot of time and harassment. But for most migrant workers, the online booking system hasn't changed anything because they don't know how to operate a computer. Even the ones who can operate a computer find it very risky making payments at Internet cafes.

Migrant workers have made great contributions to China's economic development but find it extremely difficult to even go back home after a year of back-breaking labor.

So all social sectors should follow the Shaanxi Library's example and take measures to make their life easier. If conditions permit, computers and free network should be made available to migrant workers so that they find it easier to return home for Spring Festival.

(China Daily 01/18/2012 page9)

After having read the article on the identity survey carried out by the University of Hong Kong, I am curious to know what made the reporter call it (or more specifically the results) "dangerous", because the phrasing comes across as rather dramatic in this context. What exactly is the perceived "danger" here?

Furthermore, are the results that surprising, in the sense that Hongkongers may not necessarily feel that closely associated with their counterparts on the Chinese mainland? The author uses the example of New Yorkers and Americans as a comparison and how "people with a normal mindset" would consider it illogical to differentiate between the two.

One can always discuss the purpose and academic quality/relevance of the survey, but referring to it as dangerous seems to be an overreaction - there are dangers out there, but this survey is hardly one of them.

Viktor Berglind, via e-mail

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/18/2012 page9)

CAMBRIDGE – The world economy is entering a new phase, in which achieving global cooperation will become increasingly difficult. The United States and the European Union, now burdened by high debt and low growth – and therefore preoccupied with domestic concerns – are no longer able to set global rules and expect others to fall into line.

Compounding this trend, rising powers such as China and India place great value on national sovereignty and non-interference in domestic affairs. This makes them unwilling to submit to international rules (or to demand that others comply with such rules) – and thus unlikely to invest in multilateral institutions, as the US did in the aftermath of World War II.

As a result, global leadership and cooperation will remain in limited supply, requiring a carefully calibrated response in the world economy’s governance – specifically, a thinner set of rules that recognizes the diversity of national circumstances and demands for policy autonomy. But discussions in the G20, World Trade Organization, and other multilateral fora proceed as if the right remedy were more of the same – more rules, more harmonization, and more discipline on national policies.

Going back to basics, the principle of “subsidiarity” provides the right way to think about global governance issues. It tells us which kinds of policies should be coordinated or harmonized globally, and which should be left largely to domestic decision-making processes. The principle demarcates areas where we need extensive global governance from those where only a thin layer of global rules suffices.

Economic policies come in roughly four variants. At one extreme are domestic policies that create no (or very few) spillovers across national borders. Education policies, for example, require no international agreement and can be safely left to domestic policymakers.

At the other extreme are policies that implicate the “global commons”: the outcome for each country is determined not by domestic policies, but by (the sum total of) other countries’ policies. Greenhouse-gas emissions are the archetypal case. In such policy domains, there is a strong case for establishing binding global rules, since each country, left to its own devices, has an interest in neglecting its share of the upkeep of the global commons. Failure to reach global agreement would condemn all to collective disaster.

Between the extremes are two other types of policies that create spillovers, but that need to be treated differently. First, there are “beggar-thy-neighbor” policies, whereby a country derives an economic benefit at the expense of other countries. For example, its leaders restrict the supply of a natural resource in order to drive up its price on world markets, or pursue mercantilist policies in the form of large trade surpluses, especially in the presence of unemployment and excess capacity.

Because beggar-thy-neighbor policies create benefits by imposing costs on others, they, too, need to be regulated at the international level. This is the strongest argument for subjecting China’s currency policies or large macroeconomic imbalances like Germany’s trade surplus to greater global discipline than currently exists.

Beggar-thy-neighbor policies must be distinguished from what could be called “beggar thyself” policies, whose economic costs are borne primarily at home, though they might affect others as well.

Consider agricultural subsidies, bans on genetically modified organisms, or lax financial regulation. While these policies might impose costs on other countries, they are deployed not to extract advantages from them, but because other domestic-policy motives – such as distributional, administrative, or public-health concerns – prevail over the objective of economic efficiency.

The case for global discipline is quite a bit weaker with beggar-thyself policies. After all, it should not be up to the “global community” to tell individual countries how they ought to weight competing goals. Imposing costs on other countries is not, by itself, a cause for global regulation. (Indeed, economists hardly complain when a country’s trade liberalization harms competitors.) Democracies, in particular, ought to be allowed to make their own “mistakes.”

Of course, there is no guarantee that domestic policies accurately reflect societal demands; even democracies are frequently taken hostage by special interests. So the case for global rulemaking takes a rather different form with beggar-thyself policies, and calls for procedural requirements designed to enhance the quality of domestic policymaking. Global standards pertaining to transparency, broad representation, accountability, and use of empirical evidence, for example, do not constrain the end result.

Different types of policies call for different responses at the global level. Too much global political capital nowadays is wasted on harmonizing beggar-thyself policies (particularly in the areas of trade and financial regulation), and not enough is spent on beggar-thy-neighbor policies (such as macroeconomic imbalances). Over-ambitious and misdirected efforts at global governance will not serve us well at a time when the supply of global leadership and cooperation is bound to remain limited.

Dani Rodrik, Professor of International Political Economy at Harvard University, is the author of The Globalization Paradox: Democracy and the Future of the World Economy.

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NEW DELHI – As Asia’s rising powers seek to sustain growth and ensure stability, energy security has moved to the forefront of Asian geopolitics. The recent visit by China’s Prime Minister Wen Jiabao to Saudi Arabia, the United Arab Emirates, and Qatar was as much about ensuring energy security for China as it was about China playing a role in maintaining political stability in the Middle East.

The visit came against the backdrop of the growing threat of United States-led oil-export sanctions against Iran and China’s need to secure alternative sources of oil and gas. But its unstated purpose was to bolster China’s rising profile in the Persian Gulf and the Muslim world.

Having faced a pushback in East and Southeast Asia after the US enunciated a new strategic framework for the “Indo-Pacific” region, and given the growing profile of energy in the geopolitics of the South China Sea, the Chinese are moving to secure their western flank. Indeed, in the six years since Saudi King Abdullah’s visit to China in January 2006, China has emerged as the most important Asian power in the Gulf, establishing extensive business and strategic links.

At a conference on “Gulf and Asia,” organized by the Geo-Economics and Strategy Program of the International Institute of Strategic Studies in Bahrain last October, Yang Guang of the Chinese Academy of Social Sciences pointed out that China had overtaken the US as the biggest importer of oil from the Gulf Cooperation Council (GCC) countries.

While China is investing in pipelines in Central Asia and Russia, and in oil equities in Africa and elsewhere, according to Yang, for China, “the Gulf region’s abundance of resources, its geographic position, and good transport links make it the primary option on the list of international oil suppliers.” Even as the US and Europe reduce their dependence on Gulf oil, China will remain strategically dependent on the Gulf for their energy.

So will India. Indeed, Indian National Security Adviser Shiv Shankar Menon also toured the Gulf recently, visiting Saudi Arabia, Qatar, and Kuwait. Though his foray into the region attracted much less attention than Wen’s, the focus of his visits was, likewise, energy security (as well as securing Arab investment in India).

Both China and India buy oil from Iran (with China accounting for 22% of Iran’s oil exports), and thus would be adversely impacted by US-led sanctions. But both countries have interests in the region that go far beyond oil.

For China, the GCC countries have emerged as a major market for Chinese manufactured goods and food exports. For India, the region is home to six million expatriates who remit annually close to $20-30 billion – almost half of the $60 billion in total yearly remittances by Indian workers abroad.

Concerns about the fallout of Gulf instability for India’s energy security have risen alongside deepening ties with Israel. Indeed, when Indian Foreign Minister S. M. Krishna visited Tel Aviv this month to explore possibilities for diplomacy in alleviating regional tensions, he was received with the honors accorded only to Israel’s closest allies.

Such diplomatic activism by China and India clearly reflects their shared concern about energy supplies. Both countries have so far gone along with United Nations-authorized sanctions against Iran, and have publicly demanded that Iran adhere to its commitments as a signatory to the Nuclear Non-Proliferation Treaty (NPT). But the bottom line for both countries is energy security.

Both China and India will seek to impress upon the US that any action against Iran aimed at preventing it from developing nuclear weapons should not be at the expense of economic growth and energy security in Asia. Given the stake that both the US and Europe have in stabilizing and sustaining global growth, their policies should be aimed at ensuring that China, India, and other newly industrializing Asian economies can take up the slack created by the slowdown in OECD economies.

So, even as Wen travels west, the West must travel east. A trilateral initiative by the US, China, and India in the Gulf, aimed at facilitating a resolution of historic problems in the region, would benefit global growth and stability. As the region’s biggest and most influential country, Saudi Arabia could play a positive role by inviting the US and Asia’s two giants to work jointly towards a peaceful resolution of the Iran problem.

While Russia has its interests in the region, it has little or no stake in arresting the rise in oil prices that instability in the Gulf would trigger. China and India, on the other hand, would be badly affected by another surge in oil prices.

India can ill afford a further economic slowdown, with GDP growth this year forecast to fall to 7.5%, compared to the five-year average of 9% in 2003-08, while inflation remains high, partly owing to rising energy prices. Deepening malaise there and in China would disrupt global growth at a time when Europe remains mired in crisis.

The US, too, cannot afford military conflict in the Gulf, given its need to shore up the domestic foundations of its economic power. As a result, the time is ripe for fresh ideas and innovative initiatives aimed at addressing Asia’s energy-security concerns in the Middle East. Increasingly, those ideas and initiatives will come from Asia itself.

Sanjaya Baru is Director for Geo-Economics and Strategy at the International Institute of Strategic Studies.

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As strange as it may sound, traditional Chinese medicine has much to teach us about dealing with disasters – in particular, to pay more attention to prevention than to therapy. In the same way, it is best to focus on reducing natural-disaster risks through prevention.

According to a recent report released by the World Bank and the United Nations, Natural Hazards, UnNatural Disasters: The Economics of Effective Prevention, an ounce of prevention in planning for disasters is worth a pound of cure. So prevention pays, if done right. And that means getting incentives right.

Incentives at every level – international, government, and individual – can play an important role in helping to prevent natural hazards from turning into disasters. A report by Tearfund, a leading relief and development charity, provides an instructive example from Mozambique. In 2000, Mozambique requested $3-4 million from donor countries to help it to prepare for impending floods. It received only about half that amount. But, after the floods struck, donors gave Mozambique more than $100 million in relief alone, and pledged more than $450 million for recovery and reconstruction.

How donors channel aid matters. Investments in prevention often imply long-term development expenditures. Donors could specifically earmark development aid – as opposed to humanitarian aid, whose primary focus is immediate response and relief – for prevention-related activities.

But it is not only donors’ responsibility to get it right. Governments play a crucial role in preventing disasters – above all, by providing information, which is necessary to understand threats, to warn of impending hazards, and to ensure that markets and individuals reflect risks.

The technology to produce useful information exists, but, unfortunately, many countries are not fully taking advantage of it. For example, even though Japan and Indonesia have similar seismic exposure, Japan is equipped with more than 1,000 seismographs, compared to only about 160 in Indonesia, which is roughly five times larger.

But there is also the more fundamental issue of making already-existing information public and easily accessible, which too often does not happen, frequently on national-security, commercial, and privacy grounds. In the United States, for example, the Federal Emergency Management Authority updates coastal risk maps for the hazard-prone Gulf of Mexico, but there is resistance to their adoption because such information could reduce property prices.

But prices are precisely what individuals ultimately respond to, and there are many other examples of skewed incentives that contribute to disastrous outcomes where the correct incentives could help to promote a culture of prevention. If political pressure keeps insurance prices low, for instance, that encourages people to construct in hazard-prone areas, thereby increasing their exposure and vulnerability.

Another example of distorted prices comes from Mumbai, where rent control was pervasive. Landlords neglected maintenance for decades, because they could not recoup the costs by raising rents, causing buildings to crumble in the annual monsoon rains. Like rent control, insecure ownership also reduces individuals’ incentives to make long-term investments in prevention.

In Peru, land titling is associated with an almost 70% increase in housing renovation within four years. One implication is that governments should let land and housing markets work, but complement them with targeted interventions when necessary, because, when individuals have the right information and the correct incentives, they generally decide well for themselves.

These considerations are all the more important in light of rising exposure to disasters. By 2050, the number of people exposed to storms and earthquakes in large cities could more than double, to 1.5 billion – and that is without taking climate change into account. Growing cities and a changing climate are shaping the future of the disaster-prevention landscape. But debating whether the recent Thailand floods or Hurricane Katrina was a result of climate change diverts attention from policies that continue to misprice risk, subsidize exposure, and promote hazardous behavior in the long run.

The right incentives, supported by credible and reliable institutions at all levels, can ensure that rising exposure does not translate into increasing vulnerability. Natural hazards are inevitable, but at every level we have the power to ensure that they do not become unnatural disasters.

Justin Yifu Lin is Senior Vice President and Chief Economist of the World Bank. Apurva Sanghi is a World Bank senior economist and team leader of the report Natural Hazards, UnNatural Disasters: the Economics of Effective Prevention.

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Consider how France, for example, would have responded in the 1990’s to a substantial decline in demand for its exports. If there had been no government response, production and employment would have fallen. To prevent this, the Banque de France would have lowered interest rates. In addition, the fall in incomes would have automatically reduced tax revenue and increased various transfer payments. The government might have supplemented these “automatic stabilizers” with new spending or by lowering tax rates, further increasing the fiscal deficit.

In addition, the fall in export demand would have automatically caused the franc’s value to decline relative to other currencies, with lower interest rates producing a further decline. This combination of monetary, fiscal, and exchange-rate changes would have stimulated production and employment, preventing a significant rise in unemployment.

But when France adopted the euro, two of these channels of response were closed off. The franc could no longer decline relative to other eurozone currencies. The interest rate in France – and in all other eurozone countries – is now determined by the European Central Bank, based on demand conditions within the monetary union as a whole. So the only countercyclical policy available to France is fiscal: lower tax revenue and higher spending.

While that response implies a higher budget deficit, automatic fiscal stabilizers are particularly important now that the eurozone countries cannot use monetary policy to stabilize demand. Their lack of monetary tools, together with the absence of exchange-rate adjustment, might also justify some discretionary cyclical tax cuts and spending increases.

Unfortunately, several eurozone countries allowed fiscal deficits to grow in good times, rather than only when demand was weak. In other words, these countries’ national debt grew because of “structural” as well as “cyclical” budget deficits.

Structural budget deficits were facilitated over the past decade by eurozone interest rates’ surprising lack of responsiveness to national differences in fiscal policy and debt levels. Because financial markets failed to recognize distinctions in risk among eurozone countries, interest rates on sovereign bonds did not reflect excessive borrowing. The single currency also meant that the exchange rate could not signal differences in fiscal profligacy.

Greece’s confession in 2010 that it had significantly understated its fiscal deficit was a wake-up call to the financial markets, causing interest rates on sovereign debt to rise substantially in several eurozone countries.

The European Union’s summit in Brussels in early December was intended to prevent such debt accumulation in the future. The heads of member states’ governments agreed in principle to limit future fiscal deficits by seeking constitutional changes in their countries that would ensure balanced budgets. Specifically, they agreed to cap annual “structural” budget deficits at 0.5% of GDP, with penalties imposed on countries whose total fiscal deficits exceeded 3% of GDP – a limit that would include both structural and cyclical deficits, thus effectively limiting cyclical deficits to 3% of GDP.

Negotiators are now working out the details ahead of another meeting of EU government leaders at the end of January, which is supposed to produce specific language and rules for member states to adopt. An important part of the deficit agreement in December is that member states may run cyclical deficits that exceed 0.5% of GDP – an important tool for offsetting declines in demand. And it is unclear whether the penalties for total deficits that exceed 3% of GDP would be painful enough for countries to sacrifice greater countercyclical fiscal stimulus.

The most frightening recent development is a formal complaint by the European Central Bank that the proposed rules are not tough enough. Jorg Asmussen, a key member of the ECB’s executive board, wrote to the negotiators that countries should be allowed to exceed the 0.5%-of-GDP limit for deficits only in times of “natural catastrophes and serious emergency situations” outside the control of governments.

If this language were adopted, it would eliminate automatic cyclical fiscal adjustments, which could easily lead to a downward spiral of demand and a serious depression. If, for example, conditions in the rest of the world caused a decline in demand for French exports, output and employment in France would fall. That would reduce tax revenue and increase transfer payments, easily pushing the fiscal deficit over 0.5% of GDP.

If France must remove that cyclical deficit, it would have to raise taxes and cut spending. That would reduce demand even more, causing a further fall in revenue and a further increase in transfers – and thus a bigger fiscal deficit and calls for further fiscal tightening. It is not clear what would end this downward spiral of fiscal tightening and falling activity.

If implemented, this proposal could produce very high unemployment rates and no route to recovery – in short, a depression. In practice, the policy might be violated, just as the old Stability and Growth Pact was abandoned when France and Germany defied its rules and faced no penalties.

It would be much smarter to focus on the difference between cyclical and structural deficits, and to allow deficits that result from automatic stabilizers. The ECB should be the arbiter of that distinction, publishing estimates of cyclical and structural deficits. That analysis should also recognize the distinction between real (inflation-adjusted) deficits and the nominal deficit increase that would result if higher inflation caused sovereign borrowing costs to rise.

Italy, Spain, and France all have deficits that exceed 3% of GDP. But these are not structural deficits, and financial markets would be better informed and reassured if the ECB indicated the size of the real structural deficits and showed that they are now declining. For investors, that is the essential feature of fiscal solvency.

Martin Feldstein, Professor of Economics at Harvard, was Chairman of President Ronald Reagan's Council of Economic Advisers and is former President of the National Bureau for Economic Research.

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Despite all the vows of commitment to the course of reform, the impending 20th anniversary of Deng Xiaoping's speeches on the need for bolder reforms, which he made during a tour of southern China, is increasingly reminiscent of the state of confusion that prompted the venerated architect of "socialism with Chinese characteristics" to exert his personal influence and dismantle the last ideological barricades facing reformers at the time.

But consensus building appears a more daunting task than ever before, as the barriers are vested interests rather than ideology.

Two decades back, when both the country and the people were preoccupied with lifting themselves out of poverty, there was little opposition to Deng's tantalizing rallying call for people to get rich.

Now there are worries that the foremost beneficiaries of reform and opening-up - those who did indeed become rich - are those standing firmly in way of further reforms.

There is still abundant potential for growth in the foreseeable years. But the way that the fruits of that growth are distributed is brewing fierce calls for another round of reforms with a focus on equity and fairness.

That is why there are concerns about crony capitalism or what is known as the transition trap - where a society loses direction and gets bogged down in the mire of vested interests.

Plenty needs to be done for the country to escape the curse of the "middle-income trap" but a more imperative task is to escape the transition trap and to promote fairness in policy-making.

Fairness was not a concern when the country was starting from scratch. Now, even without an official Gini coefficient, everybody - with the exception of the ultra-rich - is fuming over inequity.

The wealth gap is there, and widening. But this should not be an excuse for resisting further reform. Instead, the less-than-satisfactory status quo is a reason for broader and deeper reforms.

Deng's ultimate aim of realizing "common prosperity" should not remain a secondary concern on policy agendas.

The most positive message along those lines has been President Hu Jintao's remarks on "inclusive growth", a fair-minded proposal for the rewards of reforms to benefit all members of society. Yet the existing distribution regime is obviously incapable of this and further reform is being held hostage by powerful vested interests, which has also caused reforms in many fields to stagnate.

When commemorating Deng's reformist will, we should not ask whether we should continue with reform, but instead ask, how we can press ahead to ensure inclusive growth.

(China Daily 01/17/2012 page8)

Many Chinese netizens were thrown into a panic recently following unconfirmed widespread allegations that the personal details of subscribers to a number of major websites, including popular online forums, e-commerce, social networking and even financial institutions, were leaked.

But netizens can breathe a little easier when they log on to their favorite sites as a police investigation into the claims found that most of the websites had not been hacked over the past month, or that they had been attacked without their subscribers' information being leaked.

The National Internet Information Office, the country's Internet watchdog, said on Jan 10 that four people had been detained by police and eight others had been punished after being found guilty of fabricating the rumor.

But there are still plenty of reasons to worry about online data security as personal information has more and more commercial value and hackers appear to be pervasive in cyberspace.

The Internet has witnessed rapid development, evolving from a one-dimensional information source to a multi-dimensional platform that routinely means handing over personal information to people sight unseen. But the safety of information is still far from satisfactory. Indeed, there are more and more alarm bells ringing.

With the boundaries between the virtual world and the real world gradually disappearing there are numerous opportunities for criminals to try and exploit. The existing laws and regulations concerning information security have not played their due role as a firewall in protecting online personal information.

To avoid netizens becoming the victims of online hacking, Internet companies should make greater efforts to protect the information on their websites and those found to be selling users' information or allowing users' information to be exposed should be punished according to the law.

It is imperative to establish new security standards and mechanisms in line with the phenomenal popularity of the Internet and a law on personal information protection should be introduced as soon as possible.

(China Daily 01/17/2012 page8)

The global financial crisis wreaked havoc across the globe, but two countries avoided the worst of global meltdown, partly thanks to their strong links with China. In fact, when US Federal Reserve Chairman Ben Bernanke talked about the "green shoots" of recovery he might have been better advised to talk about the "bamboo shoots" emanating from China's fiscal stimulus package that ensured that things didn't get any worse globally, especially regionally.

The two countries that benefited the most from China - Brazil and Australia - will play an important role in China's economic development in the 21st century. Brazil and Australia both are large but diverse countries in the southern hemisphere.

Australia was settled as a colony for convicts in a great public-private-sector partnership, but it ultimately became three societies, the jailed, their jailors and the dispossessed indigenous population.

Somehow, despite these humble beginning and tensions, the society did get on thanks to great natural resources, wheat, wool and a gold rush or two. Eventually, free settlers from the old world joined the jailed and the jailors and over time outnumbered them.

The country was successful also because of great national leadership by Bob Hawke, a trade union leader, who had been to Oxford as a Rhodes Scholar, and who as prime minister led a government that decided to change the habits of a century. The Australian dollar was floated, tariffs reduced, trade unions and employers reconciled and the nation embraced its neighbours to the north in an economic partnership.

China played an important role in this development. Hawke developed close links with China and is still well known in the People's Republic of China. It was his Labour Party predecessor as prime minister, Gough Whitlam, who first visited China, even before former US secretary of state Henry Kissinger and former US president Richard Nixon. Both sides of politics have formed strong ties with China and have been "hugging the panda" ever since

The other country, Brazil, wasn't settled in the same way as Australia, but under the burden of slavery. Brazil, too, is vast but very different from Australia geographically. It also had its issues with indigenous people, it too relied on immigration for its human capital and it too has huge natural resources that the world wants. It had issues with its neighbours but for the most part avoided conflict and, according to local economists and historians, this made it relatively parochial and mainly focused on internal issues except for a quick trip next door for a tango lesson.

Brazil also had economic issues to contend with, whose impacts were being felt even as recently as a decade ago. For much of its recent economic history, it didn't have double-digit inflation and unemployment to contend with, but it had worse problems such as hyperinflation, labor market dislocation and mass poverty. Its financial system was not so much antiquated as dysfunctional. It had problems not only with its exchange rate, interest rates and debt burdens and strikes, but also widespread social unrest that was undermining its democratic stability.

But Brazil also had a trade union leader, Luiz Inacio Lula da Silva. He hadn't been to Oxford but was from the poor northeast of the country, had been jailed for his trade union activities and ran for president three times before being elected. He reformed the country's economy while maintaining strong social justice programs (many of which were started by his predecessor who was a well-known professor of sociology before becoming president).

As a result, Brazil is now economically well positioned to deliver resources to the rest of the world to generate prosperity and raise the living standards of its people. And its difficulties, especially those of the 1970s and 1980s, seem to be a distant past.

People's perception of Brazil is changing, which is not surprising given the country's solid rate of economic growth (7.5 percent in 2010, post-global financial crisis, with an anticipated follow-up of 4.5 percent in 2011 if inflation risks are contained), accommodating fiscal and monetary policy, impressive export growth (again thanks to China) and importantly strong increases in education retention and reductions in absolute poverty.

Brazilian economists have told me that more than 33 million people have been lifted out of poverty. In fact, I was told by one of my Rio de Janeiro hostesses that the Brazilian exchange rate is so strong "that even my maid is taking her holidays in Buenos Aires to do some shopping".

Are Brazil and Australia rivals for China's hand? Not really. There is plenty of room for both to prosper from China's economic development and, over time, Brazilian and Australian companies will collaborate to maximize their spheres of influence. Both will be big suppliers of China's energy needs and work with it in agricultural and clean energy fields. Brazil, as a major manufacturer, will do more with China in industrial supply chains, and Australia will focus more on construction, infrastructure, architectural and professional services to help develop second- and third-tier Chinese cities.

Besides, Australia's strong ties with China in education will attract more collaboration from Brazil. Of course, Brazil will be in the spotlight for the 2014 Football World Cup and the 2016 Olympic Games in Rio, which will help it to attract global attention and investment.

In short, both the great southern countries, full of surf, sun and sand, will play an important role in China's economic future.

The author is the J.W. Nevile fellow and adjutant professor in International Business Strategy at the Australian School of Business, University of New South Wales, Sydney, Australia, and has the books, The Airport Economist and The Airport Economist Goes to Rio, to his credit.

(China Daily 01/17/2012 page9)

There have been frequent diplomatic negotiations over the Korean Peninsula, including visits to China by Japanese Prime Minister Yoshihiko Noda and Republic of Korea (ROK) President Lee Myung-bak, and US Assistant Secretary of State Kurt Campbell's visits to China, the ROK and Japan.

Frequent interactions between and among leaders of related countries can facilitate better communication and thus prevent them from misjudging the situation and taking wrong steps.

After the Democratic People's Republic of Korea (DPRK) leader Kim Jong-il's sudden death, some people predicted that it would be difficult to maintain peace and stability on the Peninsula, which is vital for peace and stabilization of Northeast Asia. But the developments after Kim Jong-il's death show there is reason to be optimistic about the Peninsula's future.

First, the transition of power in the DPRK seems to have been successful. Second, related countries have played the role of "responsible stakeholders" and restrained from taking provocative actions against Pyongyang after Kim Jong-il's death, which indicates that they have agreed to maintain peace and stability on the Peninsula.

Despite that, many people still have doubts whether the young and inexperienced Kim Jong-un could lead the country, but till now the situation in the new DPRK has been running smoothly. After Kim Jong-il suffered a stroke in 2008, he expedited the grooming of the new leadership to be headed by Kim Jong-un. Now there are enough reasons to believe that the DPRK people have not only accepted but also backed Kim Jong-un's leadership.

In recent years, the DPRK has focused on developing its economy and improving its people's livelihoods. It has tried to open the gates of national reunification, too, which requires a stable international environment. But to create a favorable global environment, the DPRK has to improve its ties with the ROK and the US. In return, it should get food and energy aid and the sanctions against it must be lifted.

From the beginning of 2011, the DPRK has tried to resume the Pyongyang-Seoul dialogue unconditionally, hold the third DPRK-ROK summit and restart talks on tourism in and around Mount Kumgang. The DPRK also sent a delegation to the US, and the two countries have held talks in New York and Geneva.

Washington and Seoul, too, want to establish further contacts with Pyongyang. But Seoul's tough policy toward Pyongyang hasn't changed, nor has the latter's stance against those policies. On the contrary, it has intensified the confrontation between them. Therefore, the ROK has to make its policy toward the DPRK more flexible. The US, too, doesn't want to provoke the DPRK, though it wants Pyongyang to suspend its nuclear weapons' program.

Generally speaking, the US, the ROK and Japan, without changing their policies, have exercised restraint vis-a-vis the DPRK because they don't want to suspend contacts with Pyongyang after Kim Jong-il's death. All the three countries favor a policy that would relax the situation in the DPRK. But they should also make efforts to resume the Six-Party Talks as soon as possible and promote stable DPRK-ROK relations.

The DPRK wants to resume the Six-Party Talks unconditionally, while the US, ROK and Japan insist that it suspend its uranium enrichment program, abandon its plans to conduct nuclear and guided missiles tests, re-invite the International Atomic Energy Agency to check its Yongbyon nuclear facility and stop provoking the ROK if it wants the Six-Party Talks to resume.

The suspension of Pyongyang's uranium enrichment program is the key factor. The US, the ROK and Japan want the DPRK to give it up but the DPRK seems determined to continue developing light water reactors before a peace treaty is signed and sanctions against it are lifted. Denuclearization of the Peninsula is a long-term process, so all the parties have to work out a practical road map.

According to an agreement reached at a meeting in Beijing last month, the DPRK agreed to suspend its uranium enrichment program for 240,000 tons of food aid from the US, which is a good beginning.

The vital question for all related countries is to find ways to make the Six-Party Talks a success once they resume. A failure to produce results would not only undermine the mechanism of the Six-Party Talks, but also have a negative impact on the peace and stability on the Peninsula.

DPRK-ROK relations, vital to the peace and stability on the Peninsula, have fluctuated in recent years. After the Cheonan incident and exchange of fire over Yeonpyeong Island, the ROK strengthened its military with the help of the US, and the DPRK appeared to intensify its nuclear and missiles program, and increased the number of warships in nearby seas.

All these have raised fears of a military conflict between the two sides. The DPRK once announced that it would sever contacts with the ROK and their relations were strained after Kim Jong-il's death. The DPRK is unhappy with the ROK government's decision to prevent civil society members from visiting Pyongyang to mourn Kim Jong-il's death. And the ROK has prepared its military to counter possible action from the DPRK, which may heighten tensions.

The demand of the times is that all the countries work together to preserve peace and stability on the Korean Peninsula through close communication and coordination. They should not misjudge the situation and take unnecessary military gambles. And China should continue playing its role in promoting talks and appealing to all sides to exercise restraint.

But the onus is on the ROK to play a more active role to improve its relations with Pyongyang.

The author is vice-director of Institute of World Political Studies under the China Institutes of Contemporary International Relations.

(China Daily 01/17/2012 page9)

I'm happy for the children in the more than 10 primary schools in Hangzhou, Zhejiang province, who, instead of sitting their final examinations, enjoyed garden parties where they learned new knowledge and developed skills. The children received a report based on their performance at the parties and their schoolwork.

The schools made the change because they felt that the traditional exams - previously the only means of evaluating students - stifled children's interest in learning and put too much pressure on them. Many primary school students prepare for their final exams by burning the midnight oil.

The move to do away with final exams in cities such as Hangzhou, Nanjing and Wuhan may help establish a new process to evaluate students. And this raises a fundamental question: What is education for?

Education should not merely prepare students to enter the job market or help them climb the ladder of success, it should also help them to think for themselves and help their minds to grow.

The joy of learning should be an essential part of education.

Unfortunately, our education at present is aimed at making students conform and succeed in a society where the burning question on most people's lips is: "How can I get rich quick?"

The superficial polish of learning students acquire at school is seemingly for this purpose only.

Teachers prepare children to pass examinations, but they do not talk to them about life, for the simple reason few of them know about life.

Education should help students understand life with all its subtleties and complexity - its beauty, its sorrows and joys.

True education is to learn how to think instead of what to think. The shortcomings of our education system have prompted many parents to turn to Chinese language textbooks published and used in primary schools between 1912 and 1949. These books start by teaching children to respect their teachers and peers, observe nature and provide the basics of how to develop into persons of integrity.

The simple words, accompanied by illustrations, convey very basic, but important knowledge and moral requirements.

Each year more and more parents choose to home-school their children. Some critics believe that parents choose to teach their kids at home in order to keep them sheltered, but few home-schooling parents say this is the motivating reason.

Instead, most parents who choose home schooling say it is because they want their children to be happy and to provide their children good social interaction in a safe environment.

Do parents especially those lacking any teaching credentials - have a right to home-school their children?

Do they have the freedom to choose the kind of education they want for their children?

The law on nine-year compulsory education stipulates that all children must attend school for at least nine years, starting at age six or seven. But the Ministry of Education does not track the number of home-schooled youngsters. And no parents have been sued for teaching their children at home.

There are those that argue that an unconventional education means children have difficulty in adjusting themselves to the world later on in life.

But home schooling is an option some parents choose for their children as they feel it is a preferable alternative to the exam-focused treadmill that is our current education system.

The author is a senior writer with China Daily.

(China Daily 01/17/2012 page8)

Collaboration between US and China is indispensable but more needs to be done to overcome mutual misperceptions

Revolution and transformation in the Middle East and West Africa; the catastrophic earthquake, tsunami and nuclear crisis in Japan; the paralysis of the leadership of the European Union confronting the debt crisis in the eurozone; and the sudden death of Kim Jong-il, were just a few of the tumultuous events that caused global economic and political instability last year.

In contrast, bilateral relations between China and the United States were relatively stable and increasingly positive.

Three factors contributed to the improvement in China-US relations in 2011: mutual commitment, multi-function mechanisms, and increasing interdependence.

After a year of rocky bilateral relations in 2010, Beijing and Washington both stressed their commitment to building a cooperative partnership based on mutual respect and mutual benefit and that the two sides should stand together in the face of common difficulties.

An increasing number of bilateral mechanisms with policy communication, coordination, and implementation functions, bolstered this commitment to building a cooperative partnership. A number of new initiatives were set up, including high-level consultation on people-to-people exchanges, the China-US Governors Forum, and the strategic security dialogue and Asia-Pacific affairs consultation under the framework of the annual Strategic and Economic Dialogue. The 60-plus bilateral mechanisms, in addition to frequent informal exchange visits and workshops by senior officials, have built an impressive level of institutionalization in China-US bilateral relations, which has enhanced the predictability of relations between the two countries and helped consolidate the foundation of their relations. The substance of the bilateral relationship, in essence, is not to follow the two presidents' agreements in words, but to follow the roadmap in action, and those bilateral mechanisms have built significant capacity to do this.

Third, and perhaps most fundamentally, the growing interdependence across the Pacific and emerging agenda of global governance have served as "ballast" for the bilateral relationship. Despite numerous trade disputes between the two countries, economic interdependence has been steadily enhanced, manifested either by the growing bilateral trade and investment volumes, symbiotic financial relations, or the economic restructuring now underway in both countries. This interdependence is growing increasingly comprehensive. Today, it would be very tough, if not impossible, to solve any global problems without genuine cooperation and collaboration between China and the US. Global governance has rendered bilateral collaboration indispensable and has expanded the areas of potential cooperation.

While these driving forces have framed bilateral relations in a positive mode and will probably continue to do so in the years ahead, they will require consistent hard work and careful strategic planning on both sides. Whether and how the above-mentioned three forces will function in the year of 2012, will most likely be affected by the following two variables.

The first variable is the upcoming presidential election in the US, which is confronting a longer, more sluggish and fragile recovery than expected, due to weak consumption, staggering structural unemployment and perilous government debt. The political fallout from this has already been felt in the bilateral relationship. According to several recent polls recently, an increasing number of people in the US have begun to view China as a threat to the US economy. Predictably, "China bashing" will be popular among the presidential candidates. Should Beijing remain deaf and blind and disregard this campaign rhetoric in the coming year? Will bilateral relations be vulnerable to the US' upcoming election? Properly handling the effects of the upcoming presidential election and the financial crisis on their relationship will test the wisdom of Beijing and Washington.

China is now in much better economic shape than the US. But the downward pressure on the global economy will lead the US and China to confront similar challenges of economic transformation while seeking to boost job creation.

The second variable is the gap in perception between the two peoples over each other's strategic intentions. Many US citizens view the prospect of China surpassing the US in GDP within a decade with growing concern. A number of mainstream strategists in Washington have shifted to an alarmist tone recently, arguing that the US must stand tougher than before in many areas in which China's interests oppose those of the US. Such a perception is mirrored in China, where a number of mainstream strategists and the majority of the general public have interpreted the US' strategic shift to Asia-Pacific as an attempt to contain China. The good news is that policymakers in Washington realize that a rising China is good for the US. Vice-President Joe Biden recently said: "A successful China can make America more prosperous, not less".

Nevertheless, perceptions of the other's intentions remain a cause for concern in the year ahead.

The author is vice-president of the Shanghai Institutes for International Studies.

www.chinausfocus.com

(China Daily 01/17/2012 page8)

I agree with the gist of the article, but such scandals happen once and again in our daily life. The chase of and the obsession with money have totally captured the Chinese people.

There are always news reports about government officials' corruption and bribery scandals.

Major companies such as this dairy are unscrupulous and unethical.

Intellectual property rights violation and counterfeits are rampant around us. We realize there's a lot of problem in our society, and we must do something to check them.

Nissan 3, on China Daily website

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/17/2012 page9)

Tao's photographs, although termed "sexy" by some netizens, are not out of line.

They don't violate social morals, nor do they humiliate teachers' image.

She is not only a music teacher, but also a pop singer who has won many awards.

As she said, "it is my job to stand on a platform as a teacher, but singing on stage is my musical dream". Therefore, if she chooses to put the two identities together, we should not object to it.

Tao's is not the only such case. Many young people long to show their skills in areas that are not part of their job.

We already know about the traffic cop dancing tango, the greengrocer with the high-pitched voice and the fashionable cleaner.

These are people who want to excel outside their jobs.

Teachers can be different when they are away from school or college, because they have their own interests and hobbies like other people.

And Tao, too, can change the traditional image of a female teacher if she can do it without hurting anyone or breaking social norms.

(China Daily 01/17/2012 page9)

When Kodak stocks' market value dropped from their highest of $31 billion to $2.1 billion in 1997, some experts said the company had been defeated by digital technology.

It's a pity that Kodak continued to focus on making films for traditional analog cameras and slowed down its efforts for a timely transition while its competitors like Fuji and Olympus shifted their attention to digital cameras.

Kodak held about two-thirds of the global film market share during the age of traditional films, holding most patents in the field. In this sense, Kodak was undoubtedly the creator of rules in the film industry.

Traditional mindset would say that it's impossible for a company as mighty and resourceful as Kodak to collapse.

But the market is ruthless and abandons even the most glorious and powerful company if it cannot keep pace with the times. Kodak succeeded because it satisfied people's needs with innovative products, but it failed to learn from the standards it had set itself for success.

In fact, Kodak initiated two strategic transitions, ready to give up its business in traditional films and shift to digital products.

But that meant giving up the traditional advantage and huge profits.

The ultimate purpose of any business is to meet the demand of consumers, for whom what matters is experiencing novelty and convenience.

Therefore, only by pursuing innovation and satisfying customers' needs can a company be sustainable.

(China Daily 01/17/2012 page9)

In 2011 the results were even better, since agribusiness exports went to US$ 90 billion, and the surplus was of US$ 75 billion. In 2000, Europe and the USA represented 60 per cent of the Brazilian food and agribusiness export market. Ten years later, represented only 34 per cent of share. In other hands, Asia, Africa, Middle East already bought more than 50 per cent of exports. China is a great client and agribusiness is one of the few sectors of Brazilian economy that have surplus, and the responsible sector for generating cash to finance imports of almost all products.

Within agribusiness, one of the most important chains is the orange juice. Brazil is a long-term very traditional supplier to the USA and Europe. This chain generates 400 thousand jobs in Sao Paulo state, where it is located and almost US$ 2 billion in exports every year, contributing strongly to the development of the country. It is a chain full of challenges, with cost increases, stable production and worldwide stable to declining consumption of its major product.

This article has the objective of analyse the structural changes in the Brazilian orange juice chain in the last 20 years. The major conclusions were:

About the orange juice chain structure, total planted area in Brazil reduced by around 8per cent since the beginning of the 1990s followed by gains in productivity due to the use of technology. The national average of 380 boxes per hectare, in 1990, jumped to almost 500 boxes per hectare.

The rise in operational cost of orange production was around 202 per cent in dollars between the 2002/03 and 2009/10 growing seasons, from US$1.31/box to US$3.96/box. This dynamic is hitting all, but more the 87 per cent of the producers in the citrus belt of smaller size (11,011 producers with less than 20 thousand trees). Concentration of larger properties in the number of trees has increased.

Also the operational cost for processing the oranges and transporting the juice from the factory gates to the overseas port terminals increased over 50 per cent in ten years and to pursue scale, this cost increase also leads to concentration, and now more than 95per cent of Brazilian orange juice is supplied by 3 companies.

The concentration in retail over the last two decades forced downstream consolidation among bottlers, which are direct buyers of orange juice exported from Brazil. In 2009/10, only 30 bottlers bought 71 per cent of global production of orange juice. So there is concentration going on in all levels of this chain.

The conclusions regarding juice demand are also preoccupant. The United States answers for 35 per cent of global consumption. The demand for orange juice has dropped by 19 per cent in the last eight years, equivalent to a drop in the annual demand of around 44 million boxes of oranges (40.8kg). In the top 14 Western European markets, the decline was of 12per cent, lead by Germany, with a 22per cent decrease.

The market grows in Asia and other emergent economies, but is it not 100 per cent juice. From 2007 to 2010, the rate of growth of ready-to-drink beverages in emerging markets intensified reaching an annual rate of 11per cent, 6per cent in the Middle East, and 4per cent in Latin America. Most of the growth was in still drinks and nectars.

It is a chain also where Brazil faced an incredible change is the destiny of the orange juice. In the 80's, around 50-55 per cent of all the juice sold had as buyer the USA and around 40-45 per cent was sold to Europe. In 2010, the USA only represents around 13 per cent of Brazilian exports, and Europe around 70 per cent. Sales to Asia and other continents now represent more than 15 per cent, being even larger that the USA, the most traditional market for the Brazilian juice.

The USA needs to complement the internal orange juice market with imports. And Brazil lost market share in the last 15 years, coming from 80-90 per cent of USA imports in the beginning of the nineties to 50-55 per cent nowadays. With economic advantages coming from the non-imposition of import duties and anti-dumping fees, Costa Rica and Mexico conquered space in the supply of orange juice to the United States. Due to all facts described, it doesn't seem that Brazil will rebuilt it's market share and position within the USA.

Finally, the orange juice chain has serious challenges related to increasing costs and falling consumption. It is time to think in how to revert this process. It is possible, and a strategic plan is needed, probably involving Florida, Sao Paulo and Chinese organizations and institutions.

The author is professor of strategic planning and food chains at the School of Economics and Business, University of Sao Paulo, Brazil and international speaker.

Taiwan leader Ma Ying-jeou's re-election on Saturday reflects the will of the majority of Taiwan residents. The message is that most people on the island know that a good relationship with the mainland is the basis for the peace and stability that the island needs for development.

In the past three years, since Ma came to power in 2008, peaceful and stable relations across the Taiwan Straits have resulted in the three direct links (direct postal, air and shipping services), which have facilitated trade and other exchanges between the island and the mainland.

Taiwan's exports to the mainland increased from $105.4 billion in 2008 to $114.7 billion in 2010, comprising 42 percent of its total exports that year. The ever-developing economic relations across the Straits have also facilitated cooperation in other areas.

For the first time in the past more than 300 years, the long-separated two parts of the well-known painting Dwelling in the Fuchun Mountains by Huang Gongwang (1269-1354) were reunited at the Palace Museum in Taiwan and exhibited in June last year. This followed an exhibition of the cultural relics from the Yongzheng Reign of the Qing Dynasty (1644-1911) at the Palace Museum in Taiwan in October in 2009, when 37 pieces were loaned from its counterpart in Beijing.

In 2010 alone, the number of tourists from the mainland visiting Taiwan reached more than 16 million, which brought the island revenue of more than $2 billion.

All these have been achieved amid the increasingly benign conditions created by efforts from both sides under the consensus of 1992. Taiwan residents were casting votes not just for Ma Ying-jeou and his Kuomintang Party but also for their own future.

Peace and common development will bring benefits to residents on both sides of the Straits. The growing momentum of ties and the increasing cooperation prove residents in Taiwan have made the right choice.

With further efforts, there is no reason to doubt that economic cooperation and exchanges will continue to prosper. With the opening of Taiwan's tourist market to individual mainland tourists in the middle of last year, more mainland visitors will visit the island. Their visits will encourage further people-to-people exchanges, which are important to the development of relations.

With more benefits to be gained from the development of cross-Straits ties, an increasing number of Taiwan residents will realize how important it is to develop them further. This will create a virtuous cycle for relations between the island and the mainland, which will facilitate efforts to promote such ties and make unpopular any ill-intentioned moves to derail such relations.

(China Daily 01/16/2012 page8)

The imminent launch of Apple's upgraded iPhone 4 lured thousands of buyers to its two outlets in Beijing on the cold winter night of Jan 12. But the size of the crowds brought an abrupt suspension of sales of the iPhone 4s on the morning of Jan 13 and one store in Beijing didn't open at all, because the swelling crowd of eager Apple devotees created safety concerns.

This is not the first time Apple's marketing strategy has caused such turmoil among the buying public. Similar headlines occurred in January last year when the first incarnation of the iPhone 4 was launched and in May when the second version of the iPad was launched.

Apple's clever marketing has made the company's products must-have lifestyle accessories for many, and the company has now replaced Lenovo as the most profitable IT company in China.

But as helpful as it is to its bottom line, Apple's strategy for product launches inevitably results in mass hysteria and disturbances and if it continues with this marketing strategy it is only a matter of time before one of its product launches ends in tragedy.

Intentionally fuelling demand by manipulating a product release to the extent that it creates a state of panic among consumers, who fear they may not get their hands on their objects of desire, is not only immoral but also illegal.

Apple should heed the lessons from the experience of Unilever. The giant consumer goods company was fined 2 million yuan ($31.74 million) in May 2011 by the Chinese price authority for repeatedly spreading rumors of price rises that artificially boosted demand for its products.

Apple has the ability to make it easier for consumers to order new products online or by telephone. Apple cannot afford to ignore the Chinese market, so it has no excuse for not changing its strategy so as to avoid such incidents in the future.

(China Daily 01/16/2012 page8)

US should stop blaming other countries for its economic problems and be more open-minded and embrace globalization

During his recent visit to China and Japan, US Treasury Secretary Timothy Geithner discussed sanctions against Iran and the global economy. His visit came at a time when the US economy still shows no sign of recovery, the European debt crisis still needs a solution, and growth in emerging economies is slowing down. Although the job market in the United States did show some signs of improvement in the second half of 2011, the jobless figure is still high, and the real estate market in the US is still sluggish. Meanwhile, Obama's goal to double US export growth by 2015 seems a long way out of reach.

Although the US has stopped short of calling China a currency manipulator, the US has blamed China's exchange rate for the trade imbalance between the two countries, which reached $202.3 billion in 2011. During his visit, Geithner argued that China should continue to let its currency appreciate. But it is inappropriate for the US government to pressure for greater renminbi appreciation as China's trade surplus has been steadily falling since the global financial crisis, to $155.14 billion in 2011, a decline to about 2 percent of GDP from the previous year's 3.1 percent. And a recent report issued by China's central bank shows the renminbi has risen 30.2 percent against the dollar since July 2005, when China started to reform its currency mechanism.

In fact, the trade imbalance between China and the US is the result of the following four factors:

First, asset bubbles in the US that spurred export volumes from China.

Second, since China joined the World Trade Organization (WTO) in 2001, global capital has been flowing into China, bringing about a rapid increase in its processing trade surplus. Meanwhile, low salaries, together with relatively low domestic commodity prices, have strengthened the price competitiveness of Chinese goods in the global market.

Third, the processing trade, which accounts for over 50 percent of China's total trade, inevitably results in a trade surplus since China exports products made of processed imported goods. Chinese companies keep only the processing fees, while the majority of the profits go to transnational corporations.

Fourth, China maintains an advantage in labor-intensive products, but the growth in wages has not kept pace with the growth in productivity. China needs structural changes that result in fairer income distribution, greater domestic demand, improved social welfare and better protection for the environment.

Fundamentally though, the US' trade deficit is caused by its over-consumption and low savings rate. The US is a big spender on the military and government. Therefore, the US needs to cut its government and military spending to reduce its trade deficit.

The US inevitably seeks to find external reasons for its domestic problems rather than confronting the need to put its own house in order. Despite having a trade deficit with China, the US still restricts its exports of high-tech products to China and sets up barriers for Chinese companies investing in the US. The US should be more open-minded and participate more in economic globalization.

The US is also used to imposing its own views on others and believes it has the right to put other countries on a "black list". For instance, the Treasury Department of United States has the right to declare China a currency manipulator, which is against WTO rules and international law. The US is also putting pressure on China by seeking its support on financial sanctions against Iran. However, China consistently opposes any country overriding international law.

Experience shows that realizing a mutually beneficial win-win situation is the fundamental way to solve the trade imbalance between China and US and pull the US out of its current recession. China's rise is not a threat but an opportunity for the US. If the US can lift its export ban on high-tech products to meet the huge demand created by China's urbanization and modernization, it can further share the fruits of China's economic growth.

The US should also reduce trade protectionism and reduce its barriers against Chinese companies investing in the US. Lastly, the US should enlarge the number of Chinese people who travel, study and emigrate to the US, therefore boosting its job and real estate markets.

The author is a professor at the China Center for International Economic Exchanges.

(China Daily 01/16/2012 page8)

The video clip has since gone viral on the Internet, with the majority of viewers leaving comments to support the candidate, lashing out at the tyranny and snobbery of the hirers. Many simply called them a bunch of phonies.

The episode was a poor apology for a job interview, but it was a unique glimpse into the realities of present-day China. You saw jury members sitting in their high chairs lording it over the contestants and passing judgment on them. You saw a TV host sizing up someone in an outspoken display of his own ignorance. You saw a job applicant elevated to the status of a tragic hero whose main flaw was to mention the writing of a dead playwright, which knocked all the dignitaries off their pedestals. Shakespeare himself could not have produced such a telling drama.

It was natural that the candidate was familiar with the work of Shakespeare as she studied in New Zealand, graduated as an English major, acted in production's of Shakespeare's plays, and had just left a job teaching English.

The host should simply have asked what a heroic couplet was and how such knowledge was relevant for the job she wanted. Instead, his knee-jerk reaction shows he probably thought this was something he ought to know but didn't, so he started to pick fault with the woman over minor issues such as the candidate's use of the word "China", instead of more endearing forms of reference to her motherland. To make matters worse, the girl outwitted him as well as the hirers every time. The candidate outperformed them all with her wit, knowledge and inner strength.

It was a missed opportunity. Andrew Carnegie wrote an epitaph declaring himself to be "a man who knew how to enlist in his service better men than himself". Liu would have been an ideal candidate for some jobs as she was smart, assertive, and uncompromising about her positions. She would be good in tough negotiations, for instance.

Recently, our university hired a new physics professor and the school administrators and his colleagues frequently told me how smart he is. There seemed to be genuine joy that a man of such caliber has become a colleague of ours. Nobody seemed to lose sleep over the prospect of looking bad compared to him. Such a welcoming atmosphere is possible only if there is a common aim to push the program towards greater success.

Small-minded leaders and hiring professionals look for people who are less knowledgeable than themselves, as this makes it easier for them to boss such subordinates around. To make an organization grow, however, leaders ought to encourage talent. They ought to recognize that compared with their need for a false sense of security and control, there are more important goals to be achieved. Unless they outgrow their own hidden desire to look better than the people they work with, an organization will not move forward.

China is scouting all over the world for top talent. But we need to make good use of them, even if they know heroic couplets and we have no idea what they are.

The author is a US-based instructional designer, literary translator and columnist writing on cross-cultural issues.

(China Daily 01/16/2012 page8)

Since we have entered the new year and are approaching the Chinese Year of the Dragon, it is time to assess anew how the West sees China. Various models of the relationship can be discerned since China began its reform and opening-up more than three decades ago. The predictions of some have since been proven wrong by events, but the West seems unwilling to consign them to the pages of history and they have gained currency even in early 2012.

An early popular model was that China's rise was temporary and it would soon collapse. This model assumed economic change required political change (as reflected in Eastern Europe) and underestimated the ability of the Communist Party of China (CPC) to drive the country forward. These predictions have proven wrong because they forecast a collapse by a time that has "long been and gone", including the first half of the last decade. Yet even last year there were articles and media headlines talking about China's imminent collapse, for doubters claimed that all the drivers of China's success - cheap labor, abundant natural resources and growing global demand - were faltering.

They are all relative and China's 12th Five-Year Plan (2011-2015) assumes an annual GDP growth of about 8 to 9 percent versus a past long-term trend of near double-digit growth. Such a growth rate will still be the envy of the West and definitely not mean a collapse.

The second model, which followed naturally from the failure of the first, was that if China is not about to collapse it must be a threat. This model encompasses political and economic aspects both. The West raises concerns over CPC policies, human rights "violations," and the country's military build-up as GDP grows and funds them. It alleges that China is usurping Western jobs and worries over China's financial muscle to buy assets abroad. China has had more than 30 years' of peaceful rise and, earlier this year, reinforced its commitment to peaceful development in a government white paper.

Despite that, very recent actions and statements from the United States show that it perceives China as a threat. At the very least that China "needs to be contained". This is a more recent version of the threat model, backed by attempts to control China through the World Trade Organization with anti-dumping cases, demands for revaluation of the yuan and "environmental agreements" seeking to impose severe emission/carbon foot print limitations on China (and other developing countries) vis-a-vis the West.

All these models are counter-productive for the current global economic crisis given the continuing concerns over international terrorism. They need to be replaced by positive models emphasizing cooperation.

A better model to characterize China's rise is that it still represents an opportunity for the West. This is certainly the tenure of many business-focused treatments of the past 30 years. China has presented a huge opportunity for Western businesses to make low production cost goods for Western markets in joint ventures and increasingly a big opportunity to sell Western production (mainly made in China) in domestic markets as the Chinese economy grows. Even then some Western media prefer to dwell on the negatives, focusing on constraints on opportunities - that there is no level playing field versus local organizations and that there are government restrictions.

It seems Western news about problems with China always sells better than news about successful cooperation. But China still represents an opportunity more than anything else for the West to achieve business growth.

Two further models of more recent development are worthy of support, though. China has matured and opened-up and is contributing to global development and it is thus best regarded as a responsible stakeholder in the 21st century. The G8 has been replaced by the G20, with China playing an important role. China through its membership in BRICS (Brazil, Russia, India, China and South Africa) is a leading campaigner for the developing countries, especially those with low incomes. It has helped less advantaged continents - Africa, Latin America - with trade deals and investment. And China has helped the West by buying governments' debts and maintaining robust economic growth.

Perhaps the second recent model is more relevant. As referenced by US Secretary of State Hillary Clinton during her China visit and by International Monetary Fund Managing Director Christine Lagarde during a talk in Beijing in November, China and the West are rowing in the same boat.

The aspects in common between China and the West outweigh any differences. China and the West are in same boat facing the same problems, and the boat will cross a river with choppy waters better if all row in the same direction. The common threats - the financial crisis, terrorism, nuclear proliferation and environmental problems - are very important and need to be tackled together. This also reflects US President Barack Obama's statements that the relationship between China and the US is most important of 21st Century.

So for the good of future growth, the West needs to regard China as a continuing opportunity to engage with a responsible global stakeholder and work together to battle the global challenges. There's no room for outdated models, no matter how well they sell in the West.

The author, an economist, is director of China programs at CAPA International Education, an UK-USA-based organization that cooperates with Capital Normal University and Shanghai International Studies University.

(China Daily 01/16/2012 page9)

Had Siegfried or Beowulf not slain a European dragon but a Chinese long, those heroes would have committed an extraordinary crime. That's because the Chinese long is essentially a force of the good.

The long of China has a history (and etymology) of several thousand years and there are, according to linguist Michael Carr, more than 100 classical ones. Linguistically, it's a tragedy that many Chinese people, I mean the well-educated, English-speaking ones, are so readily prepared to call the long "dragons" - that's like voluntarily abandoning one's culture.

It is predicted that China will overtake the mighty United States in terms of the economy in a decade. Yet an ordinary Westerner has never heard about Lu Xun, doesn't know who Sun Wukong (the Monkey King) is, cannot tell a shengren from a junzi, has no inkling of Xi You Ji (The Journey to the West) or Hong Lou Meng (The Dream of Red Mansion), or any idea about the correct name for that mysterious creature that's lavishly showcased throughout the international media these days: the Chinese long.

A long is a long, maybe even a tianlong, but please, please do not use "dragon". That kind of linguistic imperialism happened to your unique Sichuan xiongmao once, remember? Now it's a Western "panda".

It's not like asking every expatriate to recite all Chinese mythical creatures like fenghuang, pixiu and qilin. Long is good enough already. Say it loud: l o n g - as in longing, longevity, or long time no see.

For too long, the West has engaged in cultural pseudo-studies, making everyone believe that the Chinese language (all languages, really) just transports Western meanings uttered in some inconceivable foreign tongue. The reality is, if cultural studies were science, the vocabularies of this world would add up, not overlap. Translation is something else.

In a recent article, I explained how European missionaries and philosophers conveniently translated shengren as "philosophers" or "saints", and messed up cultural China. It's one of the greatest errors in the history of Western imperialism, only comparable, perhaps, to Christopher Columbus calling the Native Americans "Indians".

Because of misleading translations, there are now "philosophers" and "saints" all over Asia, yet evidently there isn't a single buddha, bodhisattva or shengren in Europe. Think - what is that probability? Whose version of history are we taught?

Western caricaturists love to depict China as the European-style dragon: huge and red (of course), clumsy and pear-bodied, fierce, with tiny wings and a small flame. That clueless beast virtually sits there on the cover of some magazine waiting to be slain by journalist Siegfried Weischenberg, the World Trade Organization or the Barack Obama administration.

The truth is, the Chinese long are majestic, divine creatures, snake-bodied (snake is often called a xiaolong (xiao means "little" or small") and embody happiness, wisdom and virtue. In the West, on the other hand, it's a virtue to slay the dragon for a happy ending. If the European "dragon" had been on the Yellow Emperor's mind, what sort of people the "children of long" would have turned out to be?

See it from a Western perspective: the French have the cock, the Germans the eagle, the Americans the bald eagle ... and the Chinese a blinking "celestial dragon"! Of course, every sharp Western pen is trying to pick on the beast, and hurt it.

Cultures have preferences: Most Western kids love dinosaurs, the "terrible reptiles", because they think they are cute (compared to, perhaps, mythical dragons). In China, "dinosaurs" are called konglong, the terrible version of a mythical dragon. Or, how about this one: a drakon in Greek is a serpent of the seas, while a long in China is a serpent of the skies or the seas.

Some commentators argue that the "dragons" are now becoming cute and sociable in the West, too. About this, I have doubts. I believe that for Western children the empowering aspect of the dragon's physique and (fire-)power is utilized as a tool against one's foes; they feel like beast-taming dragon-riders. Look at Hollywood and the game industry.

In short, the European dragons haven't become friendlier at all, they just have been subjugated. As long as Westerners call the Chinese long a "dragon", they will project their own cultural ideas on China.

Yet, if they used the correct word, long, it would remind them that they are facing something culturally new. And, finally, they would also be able to say the names of China's beloved kungfu stars correctly: Bruce Lee (Li Xiaolong) and Jackie Chan (Cheng Long).

You must protect your traditions. This is true for all people. English as a global language is fine but, ideally, only if it accommodates all concepts and all cultures ever produced.

Embrace the differences and varieties of cultures and value those concepts that matter the most. Protect them. The long is precious.

The author is a German scholar at the Institute of World Literature of Peking University.

(China Daily 01/16/2012 page9)

Many of us are going back to our hometown for the Lunar New Year. What's your plan for the holiday? Meeting friends, visiting relatives? How about Mom and Dad, how much time did you spend with them during previous Spring Festival holidays? And what will you do to show your love this year? China Daily mobile news readers share their views.

It is very hard for me to go back to my birthplace in a remote mountain village, but I still insist on returning home during the Spring Festival since it is the only time in the year I can go back and it has become my biggest wish to be with my parents during the traditional festival. This year, I will bring them each a down jacket and their future daughter-in-law, who they have been anticipating for many years. I wish every parent good health and happiness.

XIAOWEI, Xi'an, Shaanxi province

The person I would have liked to see most is my father who spent many years working hard to support me through my higher education. However, my father passed away of liver cancer in 2011, at the age of 45, when I finally graduated, only then did I realize how I regretted not being able to take care of him. Hopefully everyone can be reunited with their parents and enjoy a happy and healthy year.

A reader,Quanzhou, Fujian province

This is my first working year and the first time in my life I will spend the Spring Festival alone without my parents. I hope everyone values every day they spend with their family. I want to tell my parents I miss them everyday and I wish them health and happiness in the coming year.

DOUDOU, Haikou, Hainan province

Since there are many unnecessary social activities and get-togethers every year I go back home during the Spring Festival, I don't normally spend much time with my family. This year I hope to spend more time with my parents, talking, cooking and eating together. In fact, I know they have never wanted much material stuff. They are satisfied as long as their children are good.

LIANXIANG, Changsha, Hunan province

I want to take my parents on a trip during my annual leave in the Chinese New Year. As they grow older, it will be impossible for me to see the outside world with them if I do not grasp every opportunity now. Besides, it is a pity for them not being able to enjoy the beautiful scenery in China.

DUODUO, Xi'an, Shaanxi province.

Knowing what parents want is the most important way to love them. As our material life has improved, parents care less about presents. What my parents now need is family reunion and a couple of grandchildren. This year, I will surprise them with an adorable grandson.

AITAOTAO, Shenzhen, Guangdong

I want to buy a full-automatic washing machine and a new cell phone for my mother as New Year gifts. Also, I plan to go shopping with her more, do more housework, cook for her and pray for blessings with her in the temple.

SERENA, Zhuzhou, Hunan province

I saved some money from the scholarship I won for occupational training and decided to buy my parents each a cardigan and my sister a pair of shoes. They feel very happy and grateful for the gifts even though they are nothing fancy. Actually my parents never care how much money we spend on them, it is enough that we care about them.

YUANLUO, Kunming, Yunan province

(China Daily 01/16/2012 page9)

I read the article and found quite naive the fact that even successful Chinese entrepreneurs have not been advised that any US resident, citizen or not, must declare to the US Internal Revenue Service all his/her domestic and foreign assets, including his/her financial wealth.

The article mentions that the policy is one-sided, which in reality it is not because it applies to US citizens, too. It is not a new policy and has been there for a long time.

If the goal of wealthy Chinese is to provide education for their children and not avoid paying taxes, they can easily get a student visa for their wards and continue living and doing good business happily in their motherland, which would also help them avoid the stressful cultural gap that one has to struggle with living in a foreign country.

Giorgio Ronzani, via e-mail

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/16/2012 page9)

Chinese scholar Xiong Peiyun's new book, You The Freedom (Ziyou Zai Gaochu), elaborates on how an individual can live a better life by adopting a positive attitude toward life. "Making the best use of the freedom you have is as important as the efforts to strive for the freedom you want," is what the author said in a recent interview.

Freelancer Han Han says something similar in his blog, posted at the end of last year, sparking an online debate on the subject of "revolution, democracy and freedom".

What touches me most is what Han Han says about grassroots people's apathy for terms such as "freedom and democracy". They hate corruption because it is not they who are the beneficiaries. They would never use the terms "freedom and democracy" unless the terms apply to their fights against infringement of their interests or rights.

Looking back at the violent revolutions in the more than 2,000 years of China's history, which we usually refer to as "peasant uprisings" in textbooks, none brought about democracy and freedom in modern sense of the terms for ordinary people.

On this issue, I agree with Xiong Peiyun and Han Han: revolution is the last thing this country and its people need now. Instead, we need reforms, which will change Chinese society for the better, slowly but certainly.

It is naive for some intellectuals to assume that they know what the majority of the people want and they tend to amplify the benefits institutional change bring about for individuals.

In the transition from planned to market economy and from an ideology-dominated to an increasingly pluralistic society, it is natural for China with one-fifth of the world's population to face problems such as abuse of power by government officials, widening gap between the haves and have-nots and unfair redistribution of social wealth.

They are compounded by the four interrelated problems of poverty, ignorance, selfishness and lack of ability for self-governance, which Y.C. James Yen had summed up as the principal cause of the country's underdevelopment. To a certain extent, they are still a major obstacle to China's healthy economic development and social progress.

Neither history nor the present times offer enough reasons to justify that a revolution would help solve all the problems. We know what has happened in Iraq, where the United States' intervention overthrew Saddam Hussein but left the country in a messy, with fears of a civil war among sectarian factions looming large. We know, too, what is happening in the countries shaken by the "Arab Spring".

Building democracy is like building a massive mansion. The better and more solid the mansion is, the longer and more complicated the process will be. That every brick, from those in the foundation to the ones on top, needs to be sound in quality is a prerequisite for such a structure. Or else, it will collapse in no time.

Individuals are the bricks. They, as individuals, need to know how to better use the freedom they are enjoying, how to protect their own interests in the right way and should have the awareness to perform their duties as citizens for public good. Among other things, there is much to be desired from the majority of individuals when it comes to these qualities.

This may be where Xiong's book and Han Han's articles are most relevant: every individual needs to learn how to make his/her life meaningful as a citizen.

Of course, this does not mean that the government has reason to shirk its responsibilities to be more transparent and provide efficient governance.

What has happened in Wukan village in Guangdong province, where a peaceful demonstration by local villagers against the local government compelled the higher authorities to probe into allegations of abuse of power and infringement upon villagers' interests by village heads, is an example of what well-intentioned citizens' endeavor will facilitate and how it will expedite the higher-ups to do what is right.

Behind almost all aspects of social progress China has seen in the past few decades can be found the endeavors of individuals. For example, cases of individuals dragging the Ministry of Railways to court have forced it to amend the unfair rules on tickets' sales and refunds on cancellations, which have helped improve the service.

A violent revolution cannot be expected to achieve all these. Instead, regression will be the result as seen in the aftermath of "peasant uprisings" in China and elsewhere.

The author is a senior writer with China Daily.

(China Daily 01/14/2012 page5)

Premier Wen's visit to the Arabian Peninsula is significant not only for bilateral ties, but also the region and world beyond

Premier Wen Jiabao's six-day visit to the Arabian Peninsula, which begins on Saturday, has drawn widespread interest both at home and abroad.

The visit comes at a time when the United States and its Western allies are mounting pressure on Iran to abandon its nuclear program and the "Arab Spring" has brought about dramatic and profound changes in the Arab world's geopolitical landscape. Against this backdrop, the significance of Wen's trip, which will take him to Saudi Arabia, Qatar and the United Arab Emirates (UAE), goes far beyond China's ties with the Arab nations and the Islamic world.

Given the robust trade ties between China and the three Arab nations, Wen's visit will have a considerable impact on the world economy, because deep Sino-Arab cooperation in energy will contribute to the stability of the world's energy market and global trade as a whole.

In recent years, especially after the inauguration of China-Arab Cooperation Forum in 2004, Sino-Arab relations have developed more rapidly. China's trade with Arab League countries has been on the fast track of growth. The volume of China-Arab League trade, the seventh largest for China, is estimated to have crossed a record $190 billion in 2011.

Cooperation in energy is undoubtedly the cornerstone of bilateral trade. According to Chinese media reports, China now imports more than 55 percent of its crude oil needs, and 47 percent of that comes from the Middle East. Saudi Arabia is China's top oil supplier, while Qatar is its largest supplier of liquefied natural gas.

To buttress its fast-growing economy, China needs a stable and continuous supply of huge volumes of fuel. The Middle East is the world's largest fuel exporter, but then it needs a long-term and stable fuel consumer to maintain its position. Sino-Arab energy cooperation caters to the interests of and is strategically important for both sides.

No wonder, China and the Arab nations attach great importance to a stable energy cooperation. Besides, normal supply and consumption of energy between the two sides also help check fluctuations in energy prices.

Nonetheless, energy alone does not signify the importance of Sino-Arab interaction. Under the framework of the China-Arab Cooperation Forum, the two sides have established more than a dozen cooperative mechanisms covering areas such as culture, finance, environmental protection, agriculture and infrastructure.

Chinese enterprises have increased their investments and technology transfer in infrastructure construction, mechanical manufacturing, and light and textile industries in the Arab world. By the end of 2010, China's accumulated investment in the Arab states had crossed $15 billion, while Arab enterprises' investment in China added up to $2.6 billion, making it one of the fastest growing sources of foreign investment in China.

The two sides have promoted civilization dialogues to deepen mutual understanding and increase the exchanges between the two peoples, too, and held the fourth conference on civilization dialogue just last month in Abu Dhabi, capital of the UAE, vowing to promote peace, tolerance and understanding.

China and the Arab nations have held an annual economic and trade forum in Yinchuan, capital of Ningxia Hui autonomous region since 2010. Hui people are largely offspring of Muslims from the Middle East and Central Asia, and Ningxia, home to 10 percent of China's 20 million Muslims, is bracing up to serve as a bridge for trade and cultural exchanges between China and the Arab states.

Unlike Western countries, which tend to impose their own values and political systems on others, China interacts with the Arab world on the principle of equality, equity, mutual respect and mutual benefit.

The US, more often than not, tilts toward Israel in its conflict with the Palestinians, infuriating many in the Arab world. In contrast, China has always supported the rightful demands of the Palestinians on the world stage, earning praise from the Arab world. Throughout the history of Sino-Arab friendship that dates back to the ancient Silk Road era, China has never pursued exclusive political agenda at the expense of the Middle East or other sides.

China's stance has been increasingly welcomed in the Arab world and many Arab states have chosen to "Look East" for cooperation and support to deal with regional and world issues.

Wen's visit to the Arabian Peninsula will help consolidate old friendship, cement political mutual trust and chart the future for a strategic partnership between China and the Arab nations. It will strengthen China's ties with the Arab League and the Gulf Cooperation Council, too, which are playing a bigger role in regional affairs now.

With the region undergoing profound changes since the "Arab Spring" began more than a year ago, regional stability will figure high in Wen's talks with leaders of the three Arab countries. And the world will be waiting for the outcome of their meetings, for Sino-Arab mutual concerns and agreements will influence every turn the region takes for peace and stability.

The author is a senior writer with China Daily.

(China Daily 01/14/2012 page5)

Chinese hard liquor Moutai is vying for a place on the world's luxury product list. The Moutai Group is reportedly in discussion with the World Luxury Association for its application.

If Moutai gets there, it would be the first world-class Chinese luxury brand.

The World Luxury Association will hold a grand party for world-class luxury products in Beijing later this month. It will publish a list of its top 100 luxury brands. A list of made-in-China luxury products, too, is expected to be published, celebrating China's accession to the World Trade Organization just over 10 years ago.

A bottle of Moutai was selling for 1,998 yuan ($316) in 2010 compared with 959 yuan the previous year, and its retail price was only 200-300 yuan a decade ago.

More than 100 bottles of bonded Moutai, the Chinese liquor served on official occasions and at State banquets, were sold for 5.22 million yuan at a liquor auction in Shanghai in February 2010.

The Moutai Group needs to produce 30,000 tons of liquor a year to meet consumers' (or, should we say, connoisseurs') demand. But its annual output is just more than 10,000 tons now.

A brand should be taken as a luxury product if it is sold at a price - before tax - that is higher than the monthly per capita wages of a country. This is one of the World Luxury Association's criteria for luxury brands. By this standard, Moutai's prohibitively high price should make China's national liquor a luxury.

Moutai, brewed in a small town in Guizhou province, has been considered the country's top brand of liquor and a status symbol for decades.

But Moutai is not fighting alone for a place on the world's luxury product list. In cooperation with the World Luxury Association, the China Council for the Promotion of International Trade established the China Luxury Trade Commission on June 9, 2011, which is supposed to find the Chinese producers of luxury goods and help them establish their presence overseas.

But this is not just an issue of whether China should have its own luxury brands. According to a research conducted by market research agency Millward Brown and media company WPP on the top 50 most valuable Chinese brands, 83 percent of consumers beyond China's borders couldn't recall a Chinese brand or company. So what does such a label mean for Moutai - or China? Does the strategy to develop Chinese luxury brands make sense?

Luxury goods are products and services that are non-essential. What China needs to develop is branded rather than luxury products. And China has a lot of catching-up to do even for branded products.

Creating and sustaining brands in developed markets is a complex, expensive and uncertain process. It took years, and a great deal of money, for giant Japanese and South Korean consumer electronics companies to establish themselves abroad.

Some Chinese companies have already begun to gain a foothold overseas, learning the ins and outs of selling their products in the developed markets. Haier, China's largest appliance-maker, is selling small refrigerators under its own name in the United States. Lenovo, the country's largest computer-maker, has made itself a global brand for overseas expansion.

China has a large and growing pool of skilled engineers and the money to invest in new products. Makers of branded goods can charge higher prices partly because they promise higher quality, which remains a crucial issue for Chinese companies that have the ambition to establish a presence in the developed markets.

Whether a product is a luxury brand is not determined by its price alone, but by consumers' judgment, according to the World Luxury Association. So Moutai has a long way to go to meet this end overseas.

Moutai has enough reason to become a luxury product. But the government should think twice before developing Chinese global luxury brands.

The author is a senior writer with China Daily.

(China Daily 01/14/2012 page5)

Regarded as the "largest annual human migration" in the world, chunyun, or the Spring Festival travel rush, sees hundreds of millions around China travel home - mostly by railway - for family reunion at this time each year. Due to high demand, travel tickets are always hard to get, and with the number of passengers growing rapidly, the transportation system is being subjected to an ever larger strain. Although online purchasing is now available, the situation still looks grim, if not altogether impossible. However, Chinese, forever optimistic, could always face up to the reality, even with a tongue-in-cheek attitude.

@Jigocity Official Weibo account of JigoCity Online Shopping Shocking! One of my colleagues, who is from Kunming city in Southwest China's Yunnan province, failed to buy a ticket for either a direct flight or a train. So he took a roundabout route by booking an international flight on January 19 from Shenzhen to Bangkok at a special price and another one from Bangkok to Kunming at a discount of 20%, only to find the total ticket price adds up to 2200 yuan ($348.7), which is even less than the price of a direct flight (2300). Crazy! Heroic actually.

@Nanfangdushibao Official Weibo Account of Nandu Daily How hard is it to buy a train ticket during Chunyun? A certain Miss Zhao finally got a ticket from Guangzhou to Changsha after she made nearly 200 phone calls. Another man, Mr Xu, spent only 24 yuan on his ticket but 29 for making the ticket-booking phone calls. "Once I was dialing for like 10 minutes, but still ended up not successful."

@Xinlangsichuan Official Weibo account of Sina.com's Sichuan Channel Years ago, Chairman Mao's two cousins also had a problem with getting a ticket on their way back home from Beijing. For three days, the Chairman's security guards failed to buy any ticket; they even prepared to settle in the train station in order to buy two tickets, but there was no luck in the end. At last, the two cousins finally got on the train home with the personal help of the station director.

@Dongdeyanse Director  Chunyun is actually short for "Spring Sports Meeting". The "competing teams" include students, migrant workers, non-local employees and visitors. They all have to take part in the following "events": standing still with heavy bags, lining up for tickets and quickly walking with their luggage. Recently, a high-tech "event" called online purchasing was also introduced.

@XinyiDJ Host of Guangdong Radio Station (Note: this is a joke) Girl: Let's break up. Boy: Why? Girl: The exam is now over, so your job of occupying seats for me in the library is also finished. Boy: Oh, but I have two train tickets for chunyun. Girl: Bad boy, I was just joking. Boy: Yeah, I was joking too when I said I have two tickets.

@Pinpaijiaolianlaoxu Chairman of the Board of Directors of Shanghai Huatai Planning Co. This Year of the Dragon is special: a record of 3 billion passengers are to be expected. If we were to link all the tickets for passenger cars and trains together into a line, it would encircle the equator nine and a half times, with a length about the distance from the earth to the moon. Honey, let's buy a ticket to see the moon!

According to China's National Development and Reform Commission, the Spring Festival travel season starts on January 8 and ends on February 19, 2012. Difficult as it may be to get a ticket, we can still choose to face it with some sense of humor. But all in all, we hope everyone can get home safely and have a happy gathering with their family.

That most universities and colleges are run in a similar way to government departments has been highlighted as the root cause of their lack of innovation and inability to cultivate first-class scientists and academic researchers.

Unfortunately, the debureaucratization of our institutions of higher learning is unlikely to make much headway, despite the temporary rules for the making of college constitutions and the rules about faculty congresses that came into effect on Jan 1.

Even though the Ministry of Education insists that the constitution of a university or college must reflect the will of the entire institution, not just the will of its president or other leaders, and that it must provide a president with enough autonomy to run the university, the intrinsic inertia of the leadership in most of our universities and colleges makes it almost impossible to change the present governing mechanism.

In most of our institutions of higher learning, leaders at various levels, rather than professors, have the absolute say over all the major decisions. Often it is an administrative official who has the most say over the running of the university or college. As a result, the pursuit of knowledge has been replaced by the pursuit of instant acclaim and money, which finds expression in the increasing number of professors that have been involved in plagiarism scandals in recent years.

True, a university constitution must clarify principles for academic organizations, such as the way academic committees and academic degree assessment committees are organized and run so they can play their role in promoting academic research. But, if the current university and college managements retain their absolute say over major decisions, it will be impossible for constitutions to be worked out that make a big difference to way that universities and colleges are run.

Likewise though the new rules require a university faculty congress composed of no less than 60 percent of teachers that must convene at least once every academic year, it will be difficult for a faculty congress to play its due role if it does not have the mandate to veto university decisions.

Academia must be independent, and unless outstanding academic researchers and professors get the respect and reward that they deserve for their academic contributions, there is little hope our institutions of higher learning will yield outstanding research results and cultivate first-class scientists and academic researchers.

Hopefully the new rules will prompt professors and researchers to maneuver for the independence they need and for a mechanism that supports academic progress.

(China Daily 01/13/2012 page8)

To a large extent, the ongoing presidential primary elections and caucuses in the United States have been dominated by talk about the country's economic travails and the stubbornly high unemployment, with the candidates all too often pointing the finger of blame at China as the cause of the country's domestic distress.

But, aside from these spurious accusations, their exposure to the limelight has also spurred some candidates to try and cash in by talking tough on foreign policy.

This kind of saber-rattling bravado is dangerous, as it not only stifles constructive discourse, it can also get out of hand and take on a life of its own, becoming a self-fulfilling prophesy.

Some presidential candidates have publicly advocated using preemptive air strikes to destroy Iran's nuclear facilities.

The proponents of air strikes argue that such military action would protect the world from a potentially hostile and nuclear-armed Iran.

But resorting to the use of a military hammer blow against Iran will not help forge a comprehensive and long-term solution, instead it will most likely spark an all-out war in the Middle East.

While the use of military force can seem to offer immediate results, these all too often turn out to be illusory as there are always unforeseen consequences.

Diplomacy and engagement are the only means to guarantee rewarding dividends that are long lasting.

The high price the country has paid for its ill-conceived war in Iraq, both economically and in human life, has brought home to many US citizens the true cost of war and the awareness that ending a war is far more difficult than waging one.

The top priority for the international community should be to prevent the situation in the Middle East from escalating further.

The candidates bidding to be the leader of the world's only superpower should shoulder their responsibilities and consider their words with care.

(China Daily 01/13/2012 page8)

For the past week, I have seen Americans painting starkly different blueprints for relations between China and the United States.

On the one hand, Maurice Greenberg, chairman and CEO of C.V. Starr & Co, wrote in the Wall Street Journal on Monday, that it is time for a China-US Free Trade Agreement.

Greenberg admitted that such talks would not be easy and there would be numerous impasses, but that even if the two countries failed to reach an agreement on many issues, progress would be possible on some of the issues and that would create a better trade climate. He said that although negotiations may take up to 10 years, just attempting to reach an agreement would have major benefits, such as encouraging Chinese direct investment in modernizing infrastructure in the US.

"China does not have to invest here, but it is to our country's advantage to have China invest here rather than in other countries," he wrote.

What Greenberg proposes is a path for strengthened cooperation between the two largest and complementary economies in the world. Despite their differences, China and the US must work together in the 21st century and that will be a big boon not just for people in China and the US, but people all over the world.

On the other hand, the message a week ago from US President Barack Obama and Defense Secretary Leon Panetta to accompany the new strategic review was quite disturbing. China has been singled out, along with Iran and the Democratic People's Republic of Korea, as a potential adversary as the US starts to shift its military focus eastwards to the Asia-Pacific region.

Without doubt this is great news for the industries that supply the US military, as fear-mongering about China will ensure the monstrous US military remains a cash cow. Even Obama admitted that despite the $450 billion cuts in US defense spending over the next decade, the defense budget will continue to grow and be larger than the next 10 countries combined.

Fortunately, US experts, such as former US Secretary of State Henry Kissinger, General Stephen Cheney and Joshua Foust of the American Security Project, have reminded people that the prospect of a major conflict with China is remote and assuming one poses the danger of becoming a self-fulfilling prophecy.

Long-time US Congressman Barney Frank has dismissed the idea that China might block the South China Sea by saying that China's economic prosperity depends on the free navigation in South China Sea as much as anyone else.

I don't think many Chinese have ever thought about military confrontation with the US. This is not just because US military superiority leaves China far behind. More importantly, any armed conflict would be disastrous for China, a nation which desperately needs peace and stability to develop its trade and economy.

It seems that the one-week-old US strategic review should be reviewed again in order to correct its wrong and dangerous message.

The author, based in New York, is deputy editor of China Daily US edition. Email: chenweihua@chinadaily.com.cn

(China Daily 01/13/2012 page8)

Giving its huge reserves and assets a bigger role in developing the real economy is a pressing and crucial task for the country

China has achieved remarkable progresses in the financial realm since reform and opening-up was initiated in 1978, and its foreign reserves, central bank assets and domestic savings all rank first in the world.

However, how to cultivate a self-growing financial vitality, develop itself from an economic power to a financial power and give its huge financial assets a bigger role in the development of the real economy are pressing and demanding tasks for the country's decisions-makers.

In the context of the country's huge financial achievements, domestic financial institutions have made substantial improvements in terms of their capital adequacy ratio, governance capabilities and the level of earnings. The country's central bank assets were 28.6 trillion yuan ($4.73 trillion) by the end of October, much higher than the $2.85 trillion held by the US Federal Reserve, $2.73 trillion by the European Central Bank and $1.8 trillion by the Bank of Japan. China is also among the countries with the highest deposit ratio, with the total value of its various forms of deposits exceeding 80 trillion yuan.

Nevertheless, such outstanding performances do not alter the fact that China still has a long way to go before it develops into a financial power. So a comprehensive financial strategy should be laid out to optimize the country's established financial system and promote its financial transformation so that it is commensurate with its ongoing economic transformation.

Despite its huge financial and capital fluidity, a large number of China's small and medium-sized enterprises have been struggling to survive a funding insufficiency. This has been largely caused by the unreasonable distribution of resources as the result of the country's extensive economic development model and its dysfunctional interest rate facilities.

An outstanding problem facing China's financial system lies in the country favoring the development of capital-intensive industries, such as manufacturing and infrastructure, which possess the advantage of huge fixed assets to attract loans, at the expense of the high-tech and service sectors. Thus, a package of sweeping macro and structural reforms should be introduced to promote the unblocked and impartial flow of the country's huge fluidity to different sectors, especially those that have difficulty accessing loans.

A financial transformation that is proportionate to the country's ongoing economic transformation will help its financial sector gain greater vitality and efficiency. The adoption of a capitalization strategy favoring scientific and technological innovation will result in the financial sector playing a bigger role in the real economy. As a way to establish a pro-innovation financial system, the nation should increase its fiscal input, including input into research and development, and establish a risk fund for industrial start-ups, as well as high-tech funds and market financing, in an bid to offer greater financial support to the development of an innovative economy.

China should also set up a banking system to serve small and medium-sized enterprises, a practice that has proved successful in countries such as France, Canada and South Korea that have established government-funded financial bodies to provide small businesses with loans. The creation of such banks in China will give domestic fund-lacking enterprises greater access to loans.

China has so far acquired more than 30 percent of the world's total reserve assets. By the end of June 2011, its foreign reserves amounted to $3.19 trillion, an increase of 30.3 percent year-on-year. This was triple that of Japan, the world's second largest reserve holder, and was almost as much as Germany's full-year GDP, which is the fourth largest economy in the world. However, the country's investment into long-term US government bonds has a relatively low return ratio of 3 to 5 percent. In comparison, foreign direct investment in China has gained an annual average return of 20 percent. Such a huge disparity makes it necessary for China to review the current management model of its enormous foreign financial assets.

China should try to shift its investment preference from the government debt of developed countries to their stocks and shares in a bid to boost the wealth-remaking capabilities of its reserve assets and to facilitate the development and expansion of its real economy overseas.

The author is an economist with the State Information Center.

(China Daily 01/13/2012 page8)

Iran faces an unprecedented test this year, because tensions between the Islamic republic and the West show no signs of easing in the foreseeable future.

Though at the end of 2011 Iran proposed restarting talks over its controversial nuclear program with the United States, Russia, China, Britain, France and Germany, political trust between Iran and the West has exhausted and they are caught in a "prisoner's dilemma". Besides, the likelihood of Iran returning to the negotiation table despite the mounting Western pressure is slim.

On Dec 31, 2011, US President Barack Obama signed into law tough new sanctions targeting Iran's central bank and financial sector in a bid to cripple Iran's oil revenue. Since the Iranian central bank is in charge of settling the accounts of most of the country's oil exports, the new sanctions, if implemented strictly, will cut many refineries off their crude sources in Iran.

That apart, many European Union diplomats claim to have reached a preliminary agreement to impose an oil embargo on Iran, indicating that the West is determined to force Teheran into submission.

Iran's earnings from oil exports account for 80 percent of its total foreign exchange revenue and 60 percent of the government's budget revenue. The United Nations Security Council has already imposed four rounds of sanctions on Iran, but since they were not targeted at the country's oil industry they didn't paralyze its economy. Now that the West seems hell-bent on striking at Iran's oil industry, Iran could suffer a lethal blow.

The West, led by the US, look to maintain the pace of their strategic expansion. Encouraged by the "Arab Spring", the US used its best commandos to kill Osama bin Laden, withdrew all its combat troops from Iraq and vowed to do the same in Afghanistan in the near future.

With governments in Tunisia, Egypt and Libya toppled, and Ali Abdullah Saleh stepping down from power in Yemen, Washington's "Greater Middle East Initiative" - previously viewed by many as a castle in the air - advanced remarkably well in 2011. Now the US sees Iran and Syria as the biggest obstacle to the success of its ambitious Middle East plan.

The West may first draw a bead on Iran because of its leading role among anti-American countries. But irrespective of which country - Syria or Iran - the West strikes first, outside military intervention will trigger a chain reaction in the "Shi'ite Crescent" region.

Moreover, the recent statement of US Defense Secretary Leon Panetta, that Iran will develop a nuclear weapon within one year, if not less, and a nuclear-weapons-armed Iran was "unacceptable", could serve as the US' timetable for settling the Iranian nuclear issue.

Adding to the tension is Israel, the closest American ally in the Middle East, which has been on tenterhooks over Iran's nuclear program and making its own preparations ever since Iranian President Mahmoud Ahmadinejad threatened to "wipe Israel off the map".

The political landscape in the Middle East and North Africa is indeed undergoing dramatic changes, worsening the environment for Israel. The pro-American and pro-Israeli governments in Egypt and Tunisia have fallen, and the Arab-Israeli conflict has been re-activated. Islamic forces are surging ahead in elections in Tunisia. Egypt has become increasingly tough on Israel. On its part, Israel wants to attack Iran to consolidate its national safety and advantages in the Middle East. And it seems Israel is likely to kidnap the US' Iran policy in the year of American presidential election.

China and Russia have enough reasons to oppose the use of force against Iran, because both countries have a stake in the Iranian issue. A conflict between Iran and the West, or even mere saber-rattling, can increase oil prices drastically, making China a victim of imported inflation because it depends on foreign crude for more than 50 percent of its needs.

Iran's northern part is close to Russia's Caucasus region which has rich oil reserves. So a direct exposure of Iran to the US could pose a national security threat for Russia.

Despite these facts, China and Russia have not been able to prevent the Iranian issue from deteriorating. So it is up to Iran and the US to settle the issue peacefully.

If Iran takes a U-turn and changes its nuclear course, it could save itself from military strikes. It's not that Iran faces imminent strikes if it does otherwise.

If the American public strongly opposes military action against Iran, the Obama administration may restrain Israel from starting a war. After all, going against public opinion could cost Obama his reelection. But conversely, if launching a war could help Obama win a second term in the White Office, Iran cannot escape military strikes.

The author is a research fellow of public policy studies at Fudan University, Shanghai.

(China Daily 01/13/2012 page9)

The Spring Festival travel season, or chunyun, is back and a total of 3.1 billion trips are expected during the 40-day peak season. It's understandable that for many it is hard to get a train ticket as China's railway system not only carries the largest and fastest growing volume of traffic of any major railway in the world, it also is by far the busiest. It carries nearly three times the volume of traffic on an average kilometer of rails as the US rail network, and about 10 times that of the European Union.

Despite substantial investment since 1949, China's railway route length compared to its land area is still one-third that of the US and only one-sixth that of the EU. More strikingly, its route length per citizen is less than one-twelfth that of the US and one-seventh that of the EU. No wonder, China's rail network is used so heavily. Indeed, its capacity is effectively rationed on many routes, something that will be readily attested by many passengers waiting for seats and freight shippers unable to get all the wagons they would like.

With such high utilization and growing traffic, China has no choice but to build new lines in its main inter-city corridors. The question is, whether the new lines should be built for traditional-speed or high-speed railways. Building high-speed railway normally costs more than building traditional rail infrastructure. But in China the incremental cost, usually considerable, is not prohibitive partly because most new lines are built on viaduct and through tunnels to minimize the use of land whether for traditional-speed or high-speed railways. Moreover, new lines built for traditional-speed trains only provide capacity, not better services, to meet the increasing competition from road and air transport. That's why nowhere in the world new inter-city rail lines are being built for traditional-speed trains.

Internationally, high-speed trains have competed successfully with buses and planes as the mode of transport. The central and coastal regions of China have just about the most favorable demographic and geographic conditions for high-speed rail network to succeed, for it will connect 15 cities with populations of 3 million or more each and 50 cities with populations of more than 1 million.

This pattern of inter-city journey is favorable for the railways. Also, rapidly growing personal disposable incomes will create demand for travel. This should augur well for the long-term economic viability of China's high-speed rail network, which just after four years can be compared to that of the French high-speed rail network in volume. With that said, many people doubt the rapid development of high-speed railway in China after the high-speed train accident in Wenzhou on July 23, 2011, which the State Administration of Work Safety in its December report blamed on technological as well as human failures. Much needs to be done and should be done to ensure that such an accident does not recur. Internationally, high-speed rail technology has an excellent safety record, and the fact that it is much safer that road transport is one of its big positives. Hence, the high-speed rail program with strengthened oversight should remain a critical component of China's land transport strategy.

High-speed rail traffic will certainly continue to expand as the lines under construction are completed and networks joined. Besides, economic growth and rising incomes will ensure increasing long-term utilization.

In the interim, any unused capacity can be filled through market-based pricing, allowing a wider spectrum of Chinese people to reap the benefits of high-speed railways. It will be attractive for trips that would otherwise be undertaken by road or air, and contribute to a safer and less carbon-intensive transport system.

Finally, shifting passenger transport to the high-speed network will increase the capacity for rail freight on the traditional-speed rail network and relieve the pressure on the expressway system in the busiest corridors.

The development of railways in China faces several challenges. First among them, as the Wenzhou accident showed, is of safety and reliability of the high-speed rail network. Second, it is important to establish a durable funding model which recognizes that infrastructure built to last and serve a century cannot start paying back during its first handful of years.

To this end, the high-speed rail program should be consolidated into a "tighter" network covering priority routes with the highest returns, while making more effective use of long-term financing instruments.

The author is China transport sector coordinator at World Bank Office, Beijing.

(China Daily 01/13/2012 page9)

Democratic centralism is the dominating principle of the CPC. The process of electing delegates is not only a chance for Party members to exercise their rights and participate in politics within the Party, but also an opportunity for Party units to turn their will into reality, which is why it is called democratic centralism.

In the coming election, delegates will be elected through the combined will of the leaders and electors after delicate consideration and arguments. Only in this way can we elect delegates that are widely representative of all within the Party.

So we ought to encourage all basic units and members of the Party to join in recommending delegates.

It needs the enthusiasm of all members to elect the best candidates as representatives.

This requires us to educate and guide the Party members to recognize the importance of the election and understand the requirements of the election, so they can fully participate.

We should also pay more attention to migrant, retired and elderly Party members, so as to ensure the participation rate can be raised compared with last year.

In the process of electing the best members, we need to solicit a wide range of opinions from those involved.

The most basic Party units should be put forward the names of delegates, while all the CPC committees should recommend candidates according to the opinion of the Party and its members.

They should recommend more candidates than needed so as to ensure healthy competition, and they should consider the opinions of all the delegates.

The committee as a collective should examine the quality of the candidates and issue public notices on their backgrounds, which is a necessary step for hearing opinions from Party units, representatives and members.

Of course, they should also hear the opinions of discipline committees, while for the candidates from enterprises they should also hear opinions from the bureaucratic organs.

The organizers must hold meetings within the CPC, and decide the candidate list by votes. At the provincial level, the CPC leaders should also consult influential organizations outside the party for opinions.

The organizers must take the meetings seriously. That is a key step to promoting democracy within the Party.

They should name at least 15 percent more candidates than needed to make the election competitive, so as to let the electors better exercise their democratic rights.

The organizers should endeavour to do their job well, by not only listening to the electors, but also guiding them to elect the right person, so as to ensure the Party organizations' firm and unchallenged leadership over the election, which is a prerequisite of electing delegates according to the Party's requirements.

(China Daily 01/13/2012 page9)

China should speed up its high-tech research, development and investment. But it should not rely on them to completely replace the declining traditional industries.

The West made a wrong policy choice in this regard by sacrificing its traditional industries such as textiles and garments for high-tech industries, thinking that the emerging economies would not be able to compete with it in those areas.

Now the Western world is feeling the squeeze in some industries because it underestimated the rise of the developing countries.

As for China, it should not only emphasize the industrial development of emerging economies, but also be aware of the re-industrialization of the Western developed countries.

A solid and well-managed industrial base is essential to guarantee the well-being of China's economy and its people.

Manman, on China Daily website

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/13/2012 page9)

Since the beginning of the year, confrontation between the United States and Iran has shown no sign of abating, instead it continues to escalate, fueling concern that it might soon get out of control.

To press Iran to abandon its nuclear program, the US-led West has stepped up efforts to impose more sanctions on the country. The European Union is mulling over when to start an embargo on Iranian oils.

To add further force to the sanctions, the US is now trying to persuade countries including China, Japan, the Republic of Korea and Turkey not to purchase Iranian oil.

Like many in the world, China conducts energy and trade cooperation with Iran in a normal, open and transparent way. It has nothing to do with Iranian nuclear issue and accords with resolutions of United Nations Security Council.

In fact, all the hullabaloo about preventing Teheran from pursuing its nuclear agenda is part of Washington's attempt to sustain the US' worldwide supremacy.

In the Pentagon's newly released document on sustaining global leadership, Iran is singled out, along with China, as standing in the way of US power projection in the world.

And of course, in an election year, drumming up international issues also helps the Obama administration to divert attention from the US' domestic woes.

However, the Middle East country remains an important energy supplier for many countries in the world. It is selfish as well as damaging to the prospects for a global economic recovery for Washington to impose its own agenda on others and to press them to buy their oil elsewhere.

Given that there is yet no ironclad evidence indicating Iran is conducting nuclear weapons research, the only reasonable solution now is that the International Atomic Energy Agency should resume contacts with Iran and the G5+1 (five permanent members of the UN Security Council plus Germany) shall increase their contacts and dialogue with Iran too.

As a key member of the UN Security Council, China remains true to its consistent conviction that conflicts between member countries should be resolved under the UN framework. Any attempt to bypass the UN in resolving conflicts more often than not turn out to be failures.

Iran should do more to convince the rest of the world that it is pursuing a peaceful path toward nuclear energy utilization, and Washington should refrain from any reckless moves.

(China Daily 01/12/2012 page8)

The chickens have certainly come home to roost on Wall Street.

More than 20 years ago, the New York Stock Exchange declared, with what has since proved to be false hubris, that a strong manufacturing industry was no longer necessary for economic prosperity. The global financial crisis has revealed the hollow ring to these words.

So it was wise for Premier Wen Jiabao to emphasize that the financial industry must serve the real economy at the Central Financial Work Conference last week.

The debt problems of many developed countries have proved that relying on the financial sector alone is a fool's paradise.

And the financial sector has also been found wanting as a driver for the global economy, which is being dragged from the doldrums in which it was becalmed by the manufacturing industries of emerging economies, particularly those in Asia.

A withering manufacturing industry means fewer jobs - a stark truth that the US is learning from bitter experience - and more people employed in the service industry.

But without a healthy manufacturing industry, the development of the service sector cannot promote sustainable economic development.

Compared with the United States and the other European countries, Germany boasts a more robust economy because it has sought a balance between finance and manufacturing.

And for developing countries, a healthy manufacturing sector is the only way to avoid the middle-income trap. Research by the Asian Development Bank indicates that shriveling manufacturing is the main reason that some emerging economies in Asia will be caught in the trap.

Developing the real economy does not mean grasping tenaciously to the lower end of the industrial chain, or being content to be the workshops for the world.

In the process of developing the real economy, it is necessary to improve the manufacturing industry with continual upgrading and innovation so that it is at the higher end of the industrial chain.

The harsh realities of the global economy have only strengthened people's awareness that developing the real economy is the only way to ensure a solid foundation for a sustainable economic recovery.

(China Daily 01/12/2012 page8)

As it adjusts its defense strategy to focus on deterrence, the US should refrain from violating international laws

US military strategy alternates between periods of expansion and contraction. These used to last for more than 20 years each, but their duration has now shrunk to half that. The defense strategy document, "Sustaining US Global Leadership: Priorities for 21st Century Defense", which was released on Jan 5, ushers in a new round of strategic military contraction.

The latest contraction has resulted in part from over-expansion. Over the past decade, the US' defense spending has surged from $280 billion in 2001 to $710 billion in 2011. The Iraq War lasted for nearly nine years and cost at least $700 billion in direct expenditure, although its true cost is estimated to be near $3 trillion. This expansion not only resulted in the deaths of 4,500 US soldiers and hundreds of thousands of Iraqi soldiers and civilians it also had a severe impact on the US economy.

The White House's 2011 budget plan shows the country's federal deficit takes up some 40 percent of its budget. No wonder the Pentagon, which makes up about 20 percent of the federal budget, needs to cut its spending.

The latest defense strategy, which plans to cut military spending over the next 10 years by about $487 billion, is just the first step toward further budget reductions. The Pentagon will have further spending cuts next year should bipartisan differences refuse to die, and the country's military spending will decline to around $500 billion annually on average.

Although the US will maintain its military superiority, the defense budget reduction will undermine the US' military capability, whether it chooses to admit it or not.

Compared with its military spending 10 years ago, which dwarfed that of the next 20 countries combined, the US defense budget is now just larger than the next 10 countries combined, and it might well be equivalent to only the next five countries combined in another decade.

In a rare presidential appearance at the Pentagon, Obama declared the US will continue to operate 11 aircraft carriers, but should he serve a second term it is likely that he will retire some of the carriers. In this case, the US would witness not only the end of its economic hegemony but also its global military dominance.

According to the new strategy, the US armed forces will rebalance toward the Asia-Pacific region, continue to fight terrorism and uphold its commitments to its allies and partner countries in the Middle East, reduce its military presence in Europe and develop "low-cost" and "small-footprint" approaches to achieve security objectives in Africa and Latin America.

But implementation of the new strategy will not help the US achieve these goals. The global contraction and Asia-focused strategy simply show its attempt to focus on deterrence, which will neither be effective in curbing terrorism and nuclear proliferation, nor in restraining the rise of emerging powers.

And despite refocusing its defense policy on Asia, its deterrence in the region will remain more or less the same. So far the US military has an unmatched ability to carry out global missions, nose out any potential large-scale armed conflicts and efficiently adjust the distribution of its military resources to confront any threats that come along. Hence, the Asia-focused defense policy does not necessarily mean the Asia-Pacific region is under more threat from the US than other regions.

Given the US' ability to respond to a full range of contingencies worldwide, its pressure on China will not be significantly bigger than before. More importantly, as long as it abides by international rules, the US cannot contain China's rise, when China conforms to the rule-based international order.

But the question remains whether the US will follow international rules, as it has so far failed to do with regard to Taiwan. It continually tries to intervene in China's internal affairs and persists in putting its national interests above international laws. No matter how its defense plan is adjusted, the US should be aware of the self-defeating consequences of its actions if it continues to do so.

The author is a professor and director of the Center for American Studies at Fudan University in Shanghai.

(China Daily 01/12/2012 page8)

With the curtain rising on the Spring Festival peak travel period, the largest human migration in the world is under way. But for many of those planning to celebrate the Lunar New Year with their families the journey home is proving to be harder than ever.

In a span of 40 days, prior to and after the upcoming Spring Festival holiday, an unprecedented 3.1 billion trips will be made throughout China - by road, railway, water and air.

Millions upon millions of migrant workers will spend time and money trying to purchase a train ticket home. They are willing to endure any hardship to be reunited with their families after a year of hard work away from their homes and even standing room only will do.

The sufferings migrant workers endure to get a train ticket during the Spring Festival period was brought into the media spotlight earlier this month, when Huang Qinghong, a migrant worker from Chongqing, wrote a letter of complaint to the Ministry of Railways after he failed to get a train ticket after waiting in line for days at the railway station. Eventually, local media provided Huang a free ticket to fly home.

His story raises the question, how much more can be done to help those who are not as lucky.

A national online and telephone booking system, which requires purchases be made with a personal identity card, has been launched this year in a bid to prevent crowds of ticket buyers from bursting the nation's stations at their seams and to prevent scalpers from hoarding tickets. But many migrant workers find themselves in a disadvantaged position because they don't know how to use a computer or have access to one, and those who try to book via the telephone find the lines are often busy.

For many migrant workers trying to get a ticket this year is like trying to win a lottery, as the old guarantees of getting a ticket, brute strength and endurance, are no longer valid with the introduction of the online and telephone ticket-buying system.

Some migrant workers are now finding it so hard to get a ticket they are complaining that they have been "deprived of the right to buy a train ticket".

I am not against the new move by the Ministry of Railways, which is under tremendous pressure to ensure everyone gets a ticket despite the overwhelming numbers. But although it might be easier said than done, a few adjustments might make it fairer.

For example, tickets sold online, through telephones and ticket windows could be rationed equally, so that people with different education backgrounds and skills can have an equal opportunity to get the tickets of their choice.

However, what is really needed is reform of the household registration system, or hukou, so that migrant workers can settle with their families in the cities where they work. Although hukou reform has been piloted in some cities, it is still hard for migrant workers to settle in cities - where they have often toiled for years - given the government restrictions on education, housing and healthcare.

But the nation owes a debt to these migrant workers. They work on construction sites and in factories. They build roads and bridges. They work as waitresses and domestic helpers. They serve us in shops. They are the doers, the risk-takers and the makers of things. They are the sinews on the muscle of China's economic might.

So let's start by paying respect to our migrant workers and treating them like equal human beings. I have heard too many stories about their sufferings, ranging from unpaid wages, workplace accidents, random evictions from temporary homes, and the closure of their children's schools. It is time to put an end to this.

I would also like the first day of the Lunar New Year to be a thanksgiving day for the country's 200 million migrant workers.

The author is a senior writer with China Daily.

(China Daily 01/12/2012 page8)

The Democratic People's Republic of Korea (DPRK) releases a joint editorial in its leading newspapers at the beginning of every year, detailing its objectives for the year. This year, the eyes of the rest of the world were focused on the DPRK especially because Kim Jong-un, a young new leader, has assumed office in Pyongyang after the sudden death of Kim Jong-il.

On Jan 1, the DPRK published a joint editorial in Rodong Sinmun (Labor News), Joson Inmingun (Korea People's Army Daily) and Chongnyon Jonwi (Youth Pioneers), in which Kim Jong-un's name appeared 16 times as "the supreme leader of our (Workers') Party and our people", "the banner of victory and glory of Songun (military first) Korea".

It seems the blow that the sudden death of Kim Jong-il dealt to the DPRK is gradually easing. Three weeks after his father's death, Kim Jong-un has taken over the country's leadership with other senior Workers' Party and military officials. He is already the supreme commander of the military, and leader of the party and the country.

Unlike Kim Jong-il, who maintained a low profile for the first three years after taking over the DPRK's leadership in 1994, Kim Jong-un has already inspected the army as the supreme commander, signifying that he will stick to the "military first" policy.

Judging from the joint editorial, the possibility of drastic policy change in the short term can be ruled out. Despite being officially proclaimed the supreme leader, Kim Jong-un still faces some challenges given his young age and inadequate preparation before assuming the country's leadership. The priority of Kim Jong-un and other senior DPRK officials is to achieve a smooth transition of power, for which they have to prove the young leader's competence.

DPRK television stations, however, broadcast a program recently that said Kim Jong-un showed military prowess at a very young age, which may help consolidate his authority. Besides, this year's editorial also mentioned that "US aggressor forces" should pull out of the Republic of Korea (ROK). This is the first time the joint editorial has done so after 2007, which in a way shows the new leadership's strength simply because it is a mission impossible as of now.

Importantly, the DPRK may increase the supply of food, daily necessities and housing, too, to improve its people's livelihood, which should be welcomed by one and all.

This year's joint editorial, however, didn't mention its nuclear plan, which shows it may be considering China's concerns. China-DPRK ties have deepened at this crucial juncture and both countries should make efforts to take them to a higher level.

Moreover, with the 100th birth anniversary of Kim Il Sung and the 70th of Kim Jong-il approaching, there will be a series of celebrations in the DPRK. And King Jong-un may formally assume the post of chief secretary of the Workers' Party and chairman of the national defense commission.

The joint editorial bestowed on Kim Jong-un titles such as "the dear respected Kim Jong-un is precisely the great Kim Jong-il", "the brilliant commander born of Mount Paektu", "peerless patriot", "peerless brilliant commander", "the supreme leader of our party, our state and our army", and said the DPRK people have "become human bulwarks and human shields to defend Kim Jong-un unto death", and they will "defend with our very lives the party central committee headed by the dear respected Comrade Kim Jong-un" and "thoroughly establish the unified command system of Kim Jong-un, supreme commander of our revolutionary armed forces".

The titles and words of praise must have been thoroughly discussed by party and military leaders, and hence reflect a political tendency. The joint editorial, in fact, defined Kim Jong-un as the legal heir to Kim Jong-il, excellent leader of the party, military genius and patriot of the DPRK.

Apart from glorifying 2012 as "a year of grand general march for inheriting the history of great upsurge generation after generation under the leadership of the great guide, the Workers' Party of Korea", the editorial also prepared the way for Kim Jong-un to become the Workers' Party chief secretary.

The joint editorial also shows economic objectives will remain the same, barring minor changes. As it has done before, the editorial advocated the development of light industry and agriculture (or an increase in supply of grains).

The priority of different sectors, too, remains almost the same, with the only difference being the acceleration of infrastructure construction in Pyongyang for the 100th birth anniversary of Kim Il Sung and relatively modest strengthening of national defense capabilities.

The minor difference nevertheless reflects the emphasis on economic development instead of strengthening of the military, which could very well signal the country's return to the international political and economic community in the long run after years of isolation.

That could be an opportunity for China, too, to share its own experiences of reform and opening-up with a close friend and neighbor to help it emerge from isolation.

The author is director of Border Area Research Institute, affiliated to the Liaoning Academy of Social Sciences.

(China Daily 01/12/2012 page9)

As Italians emerge from the current holiday season they know that 2012 will be a trying year - one that will possibly define the future of the country beyond the current generation.

This comes to Italians as no surprise because 2011 has already tested them beyond their expectations. The year 2011 was supposed to be a year of celebration as the nation feted the 150th anniversary of the reunification of the Italian Peninsula under Piedmont Savoy's dynasty, with a ceremony marked by the presence of high-level officials coming from around the world. China honored my country with the presence of Vice-President Xi Jinping.

But with the crisis from Greece, Ireland and Portugal spilling over into the bigger European economies such as Spain and Italy, the structural problem of public debts within the eurozone provided international financial speculators with painful leverage.

To prove its commitment to the economic benchmark of the times - budgetary discipline - within the space of six months, Italy changed government and passed three austerity budgets, one more severe than the other. The last one, which was approved by the Italian Parliament just before Christmas, in a case of the government feeling the pain of the common man, even elicited public tears from a cabinet welfare minister.

Yet, despite the gloom of the current economic outlook, Italians know that the fundamentals of the economy are strong. Just to mention a few but significative signs: a small budget deficit, a low debt of the private sector, a strong manufacturing sector (second in Europe only to Germany, the fifth in the world), a solid financial condition of households, the soundness of the banks, and limited foreign debt.

While Italy has been thankfully endowed with unsurpassed beauty, its land is remarkably poor of natural resources. Its greatest asset is human capital, which over a span of 3,000 years - almost on a par with China - has made the Italian Peninsula a beacon of civilization and ideas, a source of bewildered admiration from foreign visitors.

Italians are not only an inventive, creative and resourceful people. They also remain a thrifty and industrious one. SMEs (Italy's "pocket multinationals" as they are called) give a sound economic contribution and guarantee the country's prominence in world exports. These companies are known for their niche specialization and the quality and reliability of their products. It is no small feat that in the middle of the severest world recession since 1929, the country is still achieving one of the largest foreign trade surpluses in manufactured products.

Italians remain frugal and wary of private debt. The financial condition of Italian households is solid. The household total net wealth is high by international standards estimated a 178 percent of the size of the GDP. In the real estate market - like in China also Italy's favorite investment - prices are stable, thus preserving family's net worth.

True to the legacy of a people that has produced 19 Nobel Prize laureates, Italy's educational performances appear in line with the OECD countries. Scientific productivity of Italian researchers ranks at the top in Europe, a source of technological innovation for Italian firms of any size and sector with the country banking on a booming green economy to increase value within the Italian productive fabric.

At times of crisis it is reasonable to take stock of one's own assets. While Italians take comfort in the fundamentals of their economy, they know that what the country lacks in natural resources is more than compensated with intangible and invaluable asset provided by its unique and distinct culture and creativity.

The Canadian-American economist John Kenneth Galbraith once remarked that the real reason for the miracle of post-World War II Italian reconstruction was that "Italy had incorporated in its products an essential component of the culture found in cities such as Florence, Venice, Rome, Naples and Milan".

The claim that culture is Italy's oil sounds true still today. There are few other ancient civilizations that have as much steadily produced as Italy.

Culture is well rooted in our past and it is also a pillar of the present, of progress and sustainability.

The gravity of the economic challenge posed will not deter Italy from remaining also in 2012 actively engaged in the international arena where since 1945 it has been a provider of peace, stability and security also outside of its immediate reaches in the European continent and the Mediterranean.

History has often put Italy in the position of being "Europe's comeback kid". We have been there before and while we do not necessarily relish this situation - far from it - we know that we can come successfully back one more time and overcome the challenges ahead in the coming Year of the Dragon.

The author is Italy's ambassador to China.

(China Daily 01/12/2012 page9)

I think the government's approach in dealing with the traffic security is flawed. They always seem to go after the bad drivers after an accident rather than preventing one from happening. Drivers continue to ignore traffic rules such as jumping red lights at random. In fact, they don't take traffic rules seriously until they meet with an accident. The authorities should find ways of preventing accidents and warning drivers and pedestrians in advance rather than punishing the guilty after an accident.

A reader, on China Daily website

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/12/2012 page9)

When I look at photographs that show how difficult it is for common people to return home for Spring Festival, I feel China has a long way to go before it could fully upgrade its economic structure, change its economic development model and make its infrastructure good enough to meet all demands. The authorities should pay attention to the unbalanced regional development, and make more efforts to develop the central and western regions if they want to solve social problems such as heavy traffic during Spring Festival.

A reader, on China Daily website.

Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.

(China Daily 01/12/2012 page9)

A few days ago, three central government ministries issued a joint statement saying the government would ban unauthorized collection of kindergarten fees. But the eight kindergartens in Guangzhou which admit only official's children still enjoy State subsidies while the tuition for private kindergartens in Guangdong's eight cities have been climbing up.

The increased subsidies the eight kindergartens in Guangzhou have got will make the public ask whether they should be used for helping certain "privileged" people instead of the entire society. Essentially, the so-called public facilities are actually private plots for a minority, which aggravates the unequal allocation of education resources.

Government departments should maintain social equality in providing subsidies for kindergartens. Or, they should gradually make preschool education a part of compulsory education, instead of favoring privileged kindergartens over private ones. Local officials, who state publicly to strictly follow central policies to promote fair education, should stop their behind-the-scene maneuvering to help their ilk.

To prevent their children from losing at the starting line, many parents send their children to a good kindergarten regardless of the high sponsorship fees. The equality of preschool education is a matter that concerns the entire society, but some local officials refuse to make efforts to bridge the huge gap and have even worsened the situation.

(China Daily 01/12/2012 page9)

The TV dramas on court struggles have been following a rigid and boring pattern for lack of innovation. Some netizens summarize the plots and the pattern of the dramas in advance, for example, close friends betraying each other. Some have even said that Chinese mainland TV series are a mere copy of those made by TVB, a well-known television station in Hong Kong without any originality.

A more serious problem is the way the dramas portray history. Usually, we tend to let history judge the validity of truth, and we are still ready to review our past to learn lessons from it.

The complexity of market economy plays a role in deconstructing faith and values, for as long as history continues to help us pursue values, we have to uphold its sanctity.

In fact, market economy can help eliminate the vulgar orientation of court struggles on TV. More importantly, we, especially the administration, need to publicize and encourage diversity in cultural products to allow diversified artistic forms to attract audience and eliminate vulgarity.

(China Daily 01/12/2012 page9)

CAMBRIDGE - If media reports are to be believed, Nicolas Sarkozy faces a difficult presidential re-election campaign in France, as does Barack Obama in the United States.

In the 2008 US presidential election, the press told us that Obama won because he had "charisma" - the special power to inspire fascination and loyalty. If so, how can his re-election be uncertain just four years later? Can a leader lose his or her charisma? Does charisma originate in the individual, in that person's followers, or in the situation? Academic research points to all three.

Charisma proves surprisingly hard to identify in advance. A recent survey concluded that “relatively little” is known about who charismatic leaders are. Dick Morris, an American political consultant, reports that in his experience, “charisma is the most elusive of political traits, because it doesn’t exist in reality; only in our perception once a candidate has made it by hard work and good issues.” Similarly, the business press has described many a CEO as “charismatic” when things are going well, only to withdraw the label when profits fall.

Political scientists have tried to create charisma scales that would predict votes or presidential ratings, but they have not proven fruitful. Among US presidents, John F. Kennedy is often described as charismatic, but obviously not for everyone, given that he failed to capture a majority of the popular vote, and his ratings varied during his presidency.

Kennedy’s successor, Lyndon Johnson, lamented that he lacked charisma. That was true of his relations with the public, but Johnson could be magnetic – even overwhelming – in personal contacts. One careful study of presidential rhetoric found that even such famous orators as Franklin Roosevelt and Ronald Reagan could not count on charisma to enact their programs.

Charisma is more easily identified after the fact. In that sense, the concept is circular. It is like the old Chinese concept of the “mandate of heaven”: emperors were said to rule because they had it, and when they were overthrown, it was because they had lost it.

But no one could predict when that would happen. Similarly, success is often used to prove – after the fact – that a modern political leader has charisma. It is much harder to use charisma to predict who will be a successful leader.

Followers are more likely to attribute charisma to leaders when they feel a strong need for change, often in the context of a personal, organizational, or social crisis. For example, the British public did not regard Winston Churchill as a charismatic leader in 1939, but, a year later, his vision, confidence, and communication skills gave him charisma, given Britons’ anxiety after the fall of France and the Dunkirk evacuation. And then, in 1945, after the public’s focus had turned from winning the war to constructing a welfare state, Churchill was voted out of office. His charisma did not predict defeat; the change in followers’ needs did.

In practice, charisma is a vague synonym for “personal magnetism.” People vary in their ability to attract others, and their attraction depends partly on inherent traits, partly on learned skills, and partly on social context.

Some dimensions of personal attraction, such as appearance and non-verbal communication, can be tested. Various studies show that people who are rated as attractive are treated more favorably than unattractive people. One study finds that a handsome man enjoys an edge over an ugly rival that is worth 6-8% of the vote. For women, the advantage is close to ten points.

Non-verbal signals account for a major part of human communications, and simple experiments have shown that some people communicate non-verbally better than others. For example, a Princeton University study found that when people were shown images of two candidates in unfamiliar elections, they could predict the winners seven times out of ten. A similar study at Harvard, in which people were shown 10-second silent video clips of 58 elections, found that viewers’ predictions explained 20% of the variation in the two-party vote – a more powerful variable than economic performance. Ironically, the predictions became poorer when the sound was turned on.

In the 2008 election, Americans felt disillusioned by the Bush administration’s war in Iraq, and by the financial crisis that erupted two months before the vote. Obama was an attractive young candidate who spoke well and projected a sense of hope for the future. Clearly, this is one reason why Obama gained a reputation for charisma.

But part of his charisma was in the eyes of his followers. People sometimes say of charisma that “we know it when we see it,” but we are also looking in a mirror. As the economy worsened, unemployment rose, and Obama had to deal with the messy compromises of governing, the mirror became cloudier.

Charisma tells us something about a candidate, but it tells us even more about ourselves, the mood of our country, and the types of change we desire. Hard economic times make it difficult to maintain charisma. Obama faces the continuing challenges of unemployment and a recalcitrant Republican opposition, and Sarkozy must contend with similar problems. When they are campaigning, however, their rhetoric will be freed from the need to compromise. This year’s elections will be the true test of their charisma.

Joseph S. Nye, Jr., is a professor at Harvard and the author of The Future of Power.

www.project-syndicate.org

COPENHAGEN – Dressing up failure as victory has been integral to climate-change negotiations since they started 20 years ago. The latest round of talks in Durban, South Africa, in December was no exception.

Climate negotiations have been in virtual limbo ever since the catastrophic and humiliating Copenhagen summit in 2009, where vertiginous expectations collided with hard political reality. So as negotiators – and a handful of government ministers – arrived in Durban, expectations could not have been lower.

Yet, by the end of the talks, the European Union’s climate commissioner, Connie Hedegaard, was being applauded in the media for achieving a “breakthrough” that had “salvaged Durban,” and, most significantly, for achieving the holy grail of climate negotiations, a “legally binding treaty.” According to British climate minister Chris Huhne, the results showed that the United Nations climate-change negotiation system “really works and can produce results.”

Sure, the agreement would come into effect only in 2020 – which sounds oddly complacent when environmentalists and political leaders warned ahead of the Copenhagen conference that we had just six months or 50 days to solve the climate problem. But, as the British newspaper The Guardian assured readers, this was a breakthrough, because developing countries, including India and China, were, for the first time, “agreeing to be legally bound to curb their greenhouse gases.” And, just as importantly, the US was making the same promise.

Let’s take a look at the actual agreement reached in Durban that generated all that congratulatory back-slapping. It won’t take long: the document runs to two pages, contains no commitments to cut emissions, and outlines no policies to implement the undefined cuts. There is simply a promise “to launch a process to develop a protocol, another legal instrument, or an agreed outcome with legal force.”

An agreement to launch a legal process. That is what everyone got so worked up about? And, again, the negotiators merely promised to set themselves a deadline of 2015 to finish setting up this legal process, which would enter into force five years hence.

Just a few days later, the Indian environment minister, Shrimati Jayanthi Natarajan, stressed that there was no legally binding treaty: “India cannot agree to a legally binding agreement for emissions reduction at this stage of our development.…I must clarify that [Durban] does not imply that India has to take binding commitments to reduce its emissions in absolute terms in 2020.”

India was not alone. The day after the Durban conference, Canada officially withdrew from the Kyoto Protocol, which Russia and Japan have already declined to extend, leaving only the EU’s member states and a few other countries committed to further reductions.

Hollow victories have been central to climate negotiations since they began. The Durban agreement uncannily echoes the agreement reached in Bali in 2007 “to launch a comprehensive process to enable the full, effective, and sustained implementation of the [UN Climate] Convention through long-term cooperative action.” According to that deal – which was, of course, much celebrated at the time – a legal treaty was supposed to be ready for the 2009 Copenhagen meeting.

In Kyoto in 1997, the treaty was acclaimed as “a milestone in the history of climate protection,” and President Bill Clinton declared that “the United States has reached an historic agreement with other nations of the world to take unprecedented action to address global warming.”

Of course, the treaty had already been rejected in the US Senate by a 95-0 vote, and thus was dead on arrival. This, and lax interpretations of emissions in the years following Kyoto, meant that more emissions occurred under the protocol than had been expected to occur in its absence according to research undertaken by the economists Christoph Böhringer and Carsten Vogt.

Even at the start of global climate-change negotiations in Rio de Janeiro in 1992, the aim of putting the planet “on a course to address the critical issue of global warming” soon went awry. Rich countries fell 12% short of their promise to cut emissions to 1990 levels by 2000.

For 20 years, climate negotiators have repeatedly celebrated deals that haven’t panned out. Worse, for all practical purposes, the promises that have been made have had no impact on global CO2 emissions. They have only provided false hope that we have addressed climate change and allowed us to push it to the back burner for another few years. So, before we get too excited celebrating the “breakthrough” of Durban, we would do well to reflect on a two-decade history of flogging a dead horse.

We will never reduce emissions significantly until we manage to make green energy cheaper than fossil fuels. We must focus sharply on research and development to drive down alternative energy prices over coming decades.

The first step toward doing that is to end our collective suspension of disbelief when it comes to climate-change negotiations. We need to see through the hype and self-serving political spin. We owe it to the future to do better.

Bjørn Lomborg is the author of The Skeptical Environmentalist and Cool It, head of the Copenhagen Consensus Center, and adjunct professor at Copenhagen Business School.

www.project-syndicate.org

China's resilient trade data is much-needed good news for the world economy, which is threatened by the lingering European debt troubles and uncertainties arising from the forthcoming US election.

US policymakers who are reportedly planning to create a government task force to monitor China over trade and currency issues, should take a hard look at the latest Chinese trade figures.

That does not mean they should misuse these statistics to help score political points with voters by blaming China for the woes of the US economy. Instead, they should seriously reflect on whether their country can learn and benefit from China's progress in rebalancing its growth model for sustainable development.

The latest statistics show that China's trade volume increased 22.5 percent year-on-year to hit a record $3.4 trillion in 2011. This is clear evidence that the world's second-largest economy has made its fair contribution to global trade growth in a year when such growth is badly needed in order to cushion the world economy against the turbulence stemming from many developed economies.

Better, China's overall trade surplus fell to $155 billion last year, down 14.5 percent from a year earlier, which is the lowest level since 2005. As a percentage of GDP, the country's trade surplus thus fell to 2.2 percent of GDP in 2011 according to an estimate by the International Monetary Fund, compared with 3.1 percent in 2010 and a high of 7.5 percent in 2007.

Given that China has largely maintained its growth momentum, such a remarkable reduction in China's dependence on net exports bears full testimony to the resolution and effectiveness of Chinese policymakers' rebalancing efforts.

The outbreak of the 2008 global financial crisis led to a consensus among Chinese officials that the country can no longer rely on export-led growth, and painful but necessary structural transformation of the economy is not only inevitable but also urgently needed.

The shrinking trade surplus as a percentage of GDP does not mean that endeavors to boost domestic consumption are no longer needed. But reduced dependence on exports can further strengthen Chinese confidence in consumption-led rebalancing.

For US policymakers genuinely concerned about their country's long-term economic health, they must realize that blaming China will not help lift the US economy out of the crisis, which was largely brought about by over-borrowing and over-spending.

More importantly, if China can rebalance itself by shifting from exports to domestic demand, why should US officials not tap into the resilience of the US economy to pursue export-led growth?

Make no mistake, getting tougher on China is simply not the way to get serious about a lasting US recovery.

(China Daily 01/11/2012 page8)